There have been many surprises this year, but one that has people scratching their heads is the lumber prices in 2020. Across the country, prices of lumber have skyrocketed, with no sign of going down, and like the other shortages in the country, people want to know why. At Thomas Construction, we want to make sure you have all of the information you need to help you make informed choices about your upcoming construction projects in the Midwest. Here is a quick look at what’s happening in the lumber industry, and how we intend to help you through your construction projects in the coming months.
Supply and Demand is Making Things Difficult
In case you hadn’t noticed, toilet paper wasn’t the only thing experiencing a shortage in 2020. Lumber is becoming harder to find. There are many reasons for this:
- • The pandemic is leading the pack.
- • More DIYers taking on projects like decks to create outdoor spaces to enjoy life
- • Even restaurants needing lumber to build outdoor spaces to help them stay in business. The construction market was starting to hit a peak through new builds – both residential and commercial, and a shortage of lumber is putting a halt on things.
There are many reasons why the lumber prices are high:
- • The mill and plant shutdowns
- • Increases of single-family home constructions
- • And even because of raised import duties on Canadian lumber causing a supply shortage in the U.S.
With all of these things happening at the same time, the shortage is something everyone in the nation is experiencing.
Lumber Prices Now vs. What they Are Expected to Do
It’s bizarre, to say the least, but the prices of lumber have often doubling and tripling in cost. There is little we can do to assist with offsetting that cost for our clients. However, the hope is that as the pandemic begins to ease, we should see the lumber prices start to come back down. As with all things, there is more at play than just the pandemic, but we are hopeful that the prices will begin to come back down to the normal range.
What Does This Mean for New Builders?
While the lumber prices in 2020 are rising, we are amazed to find that the number of new constructions is as well. Between amazing mortgage rates, and the desire to find and create a place you can call home, new construction, especially for single-family homes is still high. Back in January 2017 and January 2018, housing developments were up all over the country, but between May and July of 2020, housing developments went up by an incredible 17% across the country.
If you are building a new home with Thomas Construction and are uncertain where these lumber prices will put you, we are here for you. We can help you find ways to get what you want without breaking the bank – and we are hopeful that the prices will begin to come down in the lumber markets. Also, know that we are in regular contact with our suppliers to know what is happening in the market so that we can react accordingly and strategically!
If you have been considering the possibility of a new construction of your dream home or building an investment property or commercial business, don’t let the uncertainties keep you from your dreams! Let’s talk about your goals and find a way to make them happen Thomas Construction aims to build excellence in both our fine homebuilding at the Lake of the Ozarks and our quality commercial properties in the Midwest. We are proud to have projects going in many surrounding states, and while you’ve voted us the best construction company at the Lake of the Ozarks, we proudly serve surrounding states. If you would like to learn more about our quality and integrity, visit our website to see examples of our work or make sure to follow our social media channels to stay in touch. We look forward to building your dreams!