The past one and a half years have been interesting, to say the least. So many events have converged and formed a mess of confusion and newsworthy stories that it can be a bit difficult to sort through it all and understand what goes where. One such event was the changes in the lumber market, with their exponentially increasing lumber prices and extremely low availability. Though the worst of it is now over, it is important to know just why lumber prices skyrocketed, and how this will continue to impact us in the future. Not only has the lumber market affected businesses big and small, but it has affected the housing market as well, and in Flagstaff, Arizona, we can feel that effect deeply. HomCo Lumber and Hardware strives to put their customers first, and lumber availability and prices are no exception. Read more for some background information on lumber prices and availability.

Why are Lumber Prices so High:

The cause behind increasing lumber prices can’t be tied solely to any one thing due to the complicated nature of the issue, but the main underlying cause is COVID-19. Lumber had not been a hot commodity before covid, and production was not at an ultimate high, so when sawmills closed to combat the spread of covid, there was not an abundance of lumber in storage (despite what some rumor mills would have liked you to believe). Most involved with the lumber industry even predicted that covid would cause a lowered interest in lumber, and they either sold what was in their storehouses, or lowered production further.

Unfortunately, due to the pandemic and stay-at-home measures, interest in DIY projects and home renovations spiked, and lumber was suddenly a hot commodity. After available lumber had been purchased, it was no easy matter of simply getting the sawmills up and running again. Such a process takes time, and during the pandemic, not many people were able to work directly at their place of business. Production was slow, while demand was at an all-time high.

There was also the issue of transportation. The demand for truckers and trains was, and still is, high, while they are not able to support such demand. Shipments were slow due to less train cabs available and less trucks available to haul both the lumber and the fresh wood. This created more time in between the steps of cutting trees, refining the wood, and distributing the lumber.

The main issue was with the sawmills. With the increased demand, one would think that it would be wise to create more sawmills. The problem with that is that this process takes time. Creating a sawmill takes two years at best, and during the height of the pandemic this would not have been possible, let alone productive. So, DIYers and lumber stores, like HomCo Lumber and Hardware, were left to plan around this gap in material.

Unfortunately, there were also some non-covid related issues that haven’t helped lumber production. One of the main wood sources for sawmills comes from Canada, but they have been under assault from mountain pine beetles for the past two decades, and this has eaten away at the available wood. Though there are those who suggested getting some of the abundant trees available in the South, again there is the issue of lack of transportation and the lack of sawmills in the South.

There was, and still is, also a rising home market with incredible demand. More houses means more wood to be used, and businesses were buying up wood whenever they could so that they can get the houses built and sold to buyers. One need only look at the Flagstaff housing market to see that.

All of these factors came together to form the incredible lumber price jump that we witnessed during 2020 and 2021. Though lumber prices have leveled off a bit, there are still a few continued issues, like shipment shortages, the housing market, and the beetle infestation in Canada. So, if you plan to buy a lot of wood, it would be best to wait a bit longer. Prices will only be going lower as the pandemic levels off, so if you can wait for that, or wait to buy and/or build a house, that is a solid plan of action.

What Does this Mean for House Renovations:

You may be in the market for home renovations, started one at the beginning of the pandemic, or were in the middle of one when this whole thing started.

Unfortunately, the interesting lumber price changes did affect prices and ability to perform and complete house renovations. With the housing market being strained and lumber not being available, any housing renovation involving lumber took more time than it would have otherwise, though the pandemic also affected non-lumber related renovations as well. Due to the supply issues outlined above, lumber was in short supply, and companies attempting to build homes bought lumber in bulk as soon as it was available. As a result, home renovations were difficult to fund, and were expensive as a result. This exempted any non-lumber related renovations, like painting and carpet work.

Now that the lumber prices are easing down, it will likely be easier to do renovations when compared with a brand new home. Unfortunately, now there is a paint shortage, caused by materials in Texas warehouses freezing and an explosion in an Ohio warehouse, which will make renovations in that realm more difficult. While there has been a slight, slight uptick in product, it is still unknown when it will recover, though the production companies are hoping sooner rather than later. Paint has been more expensive as a result. However, for the building itself, it is becoming easier to perform lumber-related renovations. Start with what you can, and wait for the related industries to even out before you move on to the next step. We’re in strange times now, and though the pandemic itself is calming down, the ripple effects will continue for at least the next year.

As of right now, HomCo has more wood in stock than during the pandemic, and shipments are also not as infrequent. We do have a paint shortage, but we still have some colors available, and we also perform color matching. If there is a project you would like to start, continue, or finish, HomCo will have the lumber, tools, and other equipment you need to finish it. You may not have as much time now as you did during the lockdowns, but it also won’t cost you nearly as much as it would have back last year. If you’re not as interested in the DIY aspect of a home renovation, you can also speak to our showroom and get more accurate pricing on the project you want completed. Showroom renovations have a longer waiting period than before and are a bit more expensive than before, so be sure to speak with a specialist before you get a time frame set in stone.

Conclusion

In conclusion, the crazy lumber prices have a few different causes, though COVID-19 is one of the more prominent ones. Luckily, with the pandemic being more under control and production being pushed through again, lumber prices have been falling and will continue to do so. The housing market is another issue, but if you are looking into home renovations, now is a good time to start planning it out. You may want to wait for lumber prices to dip a bit more, but if you can afford to do your renovation and wish to do it now, don’t worry too much. Prices shouldn’t go back up again. If you want to stock up on some wood for your home renovation, you can stop by HomCo Lumber and Hardware and check out our lumber yard. We have many different types of lumber, including plywood and OSB. We kept wood in stock during covid, and we will continue to keep wood in stock now for home renovations, new buildings, and any other use you can think of. Stop on by and our helpful associates will assist you with anything you may need.