Lumber prices soar above $1,000 for the first time since mid-June
December 10, 2021 | 12:05 pm CST

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.

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Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).