If you’re one of the millions of Americans who attempted some kind of home improvement or DIY project this past year, or if you’ve started to explore purchasing a Modern-Shed for yourself, you’ve probably bemoaned the delays and price increases in everything from lumber to insulation and windows.
So what is UP with the lumber prices? Prices rose by more than 250% in the last year, and over 350% from March 2020’s five-year lows. Why?
At the outset of the pandemic, many mills initially slowed or even halted production. Even when they returned to work, most did so with limited staff and operational hours. Additionally, resin producers, who support the production of treated lumber and composites, switched over their operations to produce sanitizers to meet the demand for hygiene and cleaning products, often at a high profit margin making them reluctant to switch back their operations.
Despite the decreased production, demand for lumber has actually increased. Construction has continued to rise fairly steadily over the past few years, and many living in coastal cities have been finding they need more space to juggle work and personal life. Whether they choose to augment their space with Modern-Shed or build a new home farther inland, they are feeling the effects of the current lumber market. Add in all the Covid-DIYers, as well as increased tariffs on Canadian lumber, and we have landed in our current situation.
What’s the fix? Just last week, senior officials from the National Association for Home Builders met with Commerce Secretary Gina Raimondo on the importance of finding a solution to the lumber crisis. Government leaders are looking for ways to increase domestic lumber production, which some believe has not risen to meet the increased demand even prior to the pandemic. NAHB officials reported that the administration recognizes the importance of not slowing down the housing market (and thus the entire economy, potentially), and is serious about finding a path to stabilizing lumber prices. Many other experts are optimistically predicting a bit of relief as 2021 comes to a close, as futures trading has finally seen a substantial drop.
In the meantime, Modern-Shed realizes that your need for space and balance doesn’t depend on market fluctuations. Rather, we continue to provide our clients highly competitive pricing, as well as our years of expertise as the pioneer of living-space shed designs. If you’re interested in taking advantage of the upcoming pricing trend, make sure to visit our website to connect with a Design Pro today!