Lumber prices increased 5% on Thursday, Dec. 9, to $1,024, rising to more than $1,000 per thousand board feet level for the first time since mid-June, according to a Market Insider report.

The report stated that the price hike occurred as the commodity experienced heightened volatility amid supply chain issues and steady demand from home builders.

In 2021, prices peaked above $1,700 bf in May and subsequently fell as much as 74% before bottoming around $452 and rebounding 127% to their current level. The commodity is still down 41% from its recent high, and is only up 12% year-to-date, according to Market Insider.

Floods in Canada, sustained demand for homes in the US, and a dwindling supply of single-family homes are driving prices up, said Market Insider.

Driving the demand for homes is record low-interest rates, which means low mortgage rates that increase a borrower’s purchasing power, and an aging millennial population that is steadily graduating from student debt to mortgage debt.