Although lumber prices have declined somewhat recently, this follows a period of record increases that started in mid-2020 and have left prices at historic highs.  In a recent NAHB survey, 94 percent of builders reported a shortage of framing lumber.  Despite this, as Tuesday’s post showed, wood framing remains the dominant construction method for single-family homes in the U.S., accounting… Read More ›

The count of open construction jobs declined in May to 299,000 unfilled positions, according to data from the BLS Job Openings and Labor Turnover Survey (JOLTS). The housing market remains hot and requires additional labor, lots and lumber and building materials to add inventory. Overall, hiring in the construction sector remained strong in May, ticking down to a 4.2% rate…. Read More ›

Lumber futures prices have decreased by 52 percent (on a front-month basis) over the past seven weeks as mill prices have fallen 48 percent over the same period.[1]  In contrast, prices paid by builders since late May have declined by a fraction of that impact.  The disconnect—which has always existed—is inherent to the lumber supply chain and choices that must… Read More ›

Higher prices and limited availability of softwood lumber has been a key issue for housing and the overall inflation situation for the U.S. economy. With this in mind, did higher lumber prices in 2020 result in higher market shares for non-wood framed single-family homes? Wood framing remains the dominant construction method for single-family homes in the U.S., according to NAHB… Read More ›

Recent posts have discussed how builders are facing widespread shortages of many building materials, and how materials prices for the same house have increased by 26 percent over the past year.  Results from a follow-on NAHB survey show that builders have reacted to the shortages in a variety of ways, most commonly by raising the prices of their homes and… Read More ›