Lumber prices are the highest they’ve been in decades. Here’s what you need to know about the cause:
- -A third of all lumber in the U.S. comes from western Canada, where forest fires have recently cut into the supply.
- -Rail capacity has also been limited for lumber supply.
- -On top of that, the U.S. has imposed tariffs on Canadian lumber, and there isn’t enough lumber in the U.S. for the domestic need.
Over the last three decades, the price of lumber per 1,000 board feet occasionally hit $400. In 2018 we’ve seen it hit an all-time high at $639.
So, how does this affect truss prices?
It affects the price of a wood truss directly. Since lumber prices are up 67% across North America, the trusses we manufacture are up at least 30% due to the higher cost of lumber. What used to cost $3.00 per foot is now $4.00.
Home Depot is also seeing the same 30% increase for wood products sold in their stores, according a report by The Wall Street Journal.
Luckily, we aren’t seeing a direct 67% increase in the cost of our trusses, but we are experiencing much higher costs than ever.
What Should You Expect in Home Construction?
This sharp increase in lumber prices is greatly affecting the whole housing industry. New homes are expected to be at least $3,000 more due to the higher lumber costs. It affects everything from framing a house, to the plywood used, to the high quality wood we use in the trusses. So from top to bottom, a spike in lumber prices causes a spike in house prices.
What’s Expected For Next Year?
While we certainly can’t predict the future, many analysts believe the high lumber prices are just a bubble and it will pop soon. Lumber prices are constantly in flux and swing in one direction year-to-year. By 2019, analysts believe we’ll be back down around $250 per 1,000 board feet rather than the $600s and $500s we’re experiencing now.
Why Is All of This Important?
First, we want to be transparent with you about the cost of what we manufacture. We certainly don’t want anyone to think we’re raising truss prices just for the sake of some increased profit. No, truss prices are increasing due to the increase of lumber prices. It simply costs more to produce the same truss.
Second, we want you to be aware that building a home, barn, or other structure is going to cost more at the moment due to the increase in lumber prices. You may have started your project back in 2017 or even started designing and getting estimates in 2016 when costs were completely different. So we don’t want you to think anyone is taking advantage of you now that prices are higher.
Learn More About Truss Pricing:
If you’re interested in learning more about how we price our trusses and want some updated price data, please refer to our step-by-step guide here.