We recently posted about soaring lumber prices and their impact on the cost of a new home, not to mention many other segments of the industry that uses the input. So what are some of the contributing factors? A recent report from the NAHB’s Eye on Housing says that the failure of domestic sawmills to sufficiently boost output in the face of ongoing strong home buyer demand has been a primary factor in the recent record-high lumber prices and volatility in 2021. Indeed…
“With a historically low level of overall housing inventory and solid demand due to low mortgage interest rates and favorable demographics, new construction has been unable to add additional needed supply to the market, resulting in unsustainable gains for home prices.”
Click here to read the full report at the NAHB’s Eye on Housing.
