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Rise in lumber prices to push up US housing costs
28/04/2010
What is sauce for the goose is not as always so tasty for the gander: While a rise in lumber prices is excellent news for many firms, such as forestry investment companies and wood product suppliers and softwood mills, which were hard-hit during the global economic turn-down, the news is not quite so welcome in the US building trade.
Reports are warning that the increase in lumber and wood product prices may have a knock on effect for homebuilders, due to increased expenses.
Over the last 12 months, the composite price for 1,000 board feet of framing lumber has risen from $248 to $365. This is according to statistics released by Random Lengths, a publication specialising in the wood products industry.
Builders are saying that the higher lumber prices have not affected them in a significant way yet, but they are expecting to feel the effects shortly.
Gary Harr, co-owner of US firm Harr and Lemme Homes, commented: “We won't see the price increase for another month or so. Anything that we start from now on, it's going to affect those prices.”
According to the National Association of Home Builders, the price of lumber and wood products makes up a third of the cost of materials to build a home, so the strength of lumber prices is expected to impact heavily on homebuilding costs.
Reports are warning that the increase in lumber and wood product prices may have a knock on effect for homebuilders, due to increased expenses.
Over the last 12 months, the composite price for 1,000 board feet of framing lumber has risen from $248 to $365. This is according to statistics released by Random Lengths, a publication specialising in the wood products industry.
Builders are saying that the higher lumber prices have not affected them in a significant way yet, but they are expecting to feel the effects shortly.
Gary Harr, co-owner of US firm Harr and Lemme Homes, commented: “We won't see the price increase for another month or so. Anything that we start from now on, it's going to affect those prices.”
According to the National Association of Home Builders, the price of lumber and wood products makes up a third of the cost of materials to build a home, so the strength of lumber prices is expected to impact heavily on homebuilding costs.
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