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Lumber demand, prices remain high in the U.S.

Limited lumber supply and high prices for it have remained the norm over the last few months as a result of COVID-19, considered by many an unprecedented spike in the industry and causing the average price of new family homes to surge.

The housing market was one of the first industries to make a turnaround following the onset of COVID-19, making quick, long strides toward recovery to the surprise of many.

Another related surprise is the soaring demand and cost of lumber in the U.S., the industry showing a sharp spike in pricing that has become the norm over the last few months.

As a result of high demand and cost, the average price of a new single-family home has increased by roughly $16,148 since April 17, according to David Logan, director of trade and policy analysis for the National Association of Home Builders.

Climbing prices and surging demand are having a large effect on the residential construction industry, causing building delays.

Looking into the role COVID-19 has played, the current lumber industry demand can be traced back to the beginning of local and state stay-at-home-orders, which forced many businesses to close and for others in essential industries, to reduce operations.

The cut in operational capacity resulted in reduced inventory, and while demand is high, mills continue to raise prices having little if any difficulties receiving the price they want for lumber items.