Lumber prices go up during pandemic
Builders and home buyers, you may see an uptick in prices for supplies.
(LINCOLN, Neb.)-Builders and home buyers, you may see an uptick in prices for supplies.
As the pandemic continues to take its toll on businesses, timber companies are some of those that are closing and now that’s causing timber prices to skyrocket. “Well, affordable housing, apartments, rent prices, all of that comes into play when lumber goes up like this.,” said Kinning.
Matt Kinning, COO of Kinning Design Build, builds homes and has seen an uptick in timber prices.
COVID-19 has forced some timber companies to close and has slowed productivity for some builders. He says supplies that require wood or even wiring have gone up, affecting the price of new homes.
“The whole supply chain of everything that goes into the house, that is hurt by COVID-19,” said Kinning. “Factories being shut down, not to mention lead times to get products may be from overseas, or just produced in America because factories are shut down.”
He breaks it down, saying that an average uptick of $7 to $8 is added per piece of plywood.
“With plywood jumping up to $22, 25 bucks a sheet, when 15 to 18 is a little more typical, that adds up in a hurry when you need hundreds of sheets to get a project done,” adds Kinning.
He says the difference in price for a 250,000 home could be steep.
“Your gonna bump I’d say $8,000 to $10000 on a smaller price point like that,” said Kinning. “You get to a bigger home or a bigger project it could be tens of thousands of dollars pretty fast. So, it affects absolutely everybody.”
While Matt says this price hike won’t last forever, he encourages people who are building or buying a home to pay attention to those timber prices.