Skyrocketing lumber prices have more than tripled over the past 12 months and made the cost associated with building an average new single-family home significantly rise. The folks at Visual Capitalist dove deeper into the lumber price storm to find out how many new single-family homes $50k in lumber can build today versus the same period in 2020.
To calculate each home, Visual Capitalist used the following parameters:
- Lumber requirements: 6.3 board feet (bd ft) per square foot (sq ft)
- Median single-family house size: 2,301 sq ft
- Total lumber required per single-family house: 14,496 bd ft
What they found was that $50k in lumber in 2015 could build 14.74 new single-family homes. By April 2020, the same price of lumber could build around 10.5 homes. And in May, after a meteoric rise in lumber prices, $50k in lumber could only build 2.11 homes.
Here’s a visualization of what $50k in lumber can build in May 2021 versus May 2020.
On Friday, lumber prices rose at the Chicago Mercantile Exchange to over $1,700 per 1,000 bd ft, closing up 2.49% to $1,686, fresh record highs. The chart below is in a parabolic move – almost like Bitcoin or Etherum.
Despite Weyerhaeuser Co., Georgia-Pacific LLC, West Fraser Timber Co., Ltd., among others, attempting to increase output, lumber prices continue to soar and will likely remain elevated until new capacity comes online or the housing market frenzy loses steam.
All this talk about “transitory” inflation is non-sense, as Bank of America elegantly put it: “Buckle up! Inflation is here.”
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Too many people needing too much resources.
More like speculators fix’n the markets. A lot of timber sitting in yards. A LOT of wood going to overseas markets too… like china.
If you can delay delivery and ‘create’ a shortage, what happens?? Prices rocket. They’ve done this with nearly everything, remember the 70’s gas ‘shortage’. Its purely a stock market rape the wealth from the public move that works. Soon enough the prices will crash because the supply is there but people will quit buying timber. They will either hold off building or switch to another building material.
Every article with depth on the topic points to what you are saying.
My nephew works at Lowe’s. Watched a Lowe’s generated vid. The 3 or 4 big lumber corps. are colluding to jack the price. Not covid caused. No shortage of lumber.
Anytime one reads about something not working out right, which is just about everything all the time nowadays, I think that’s called another day of America’s Soviet Union Level Extinction event. We will know its entered the terminal stage when McDonald’s and many of the other fast food entities start shuttering en masse. We will also read about children starving because Mommy is too stupid and lazy to cook a pot of soup beans and a pone of cornbread.
I’m not sure mass migration was part of the plan of the great reset.
Welp, the people got just what they wanted. And they are getting it good and hard.
Are you implying they either voted for this or voted irresponsibly? lol
“Are you implying they either voted for this or voted irresponsibly? lol”
i’m sure you have heard of “climate change” from the narrative networks. some people heard biden was going to put an end to those evil fossil fuels and nasty pipelines so they stupidly voted for the person they believed would make the earth safe for humanity again…since we can’t afford to build a roof over our heads anymore.
well done dipshits; one of the primary costs of making shit in a big ass lumbermill is energy and last i checked our energy is still coming from fossil fuels.
how much did your gas go up after biden got in?
lol indeed!
Gas jumped $.20 last night at the station closest to me.
I think he means that when people have collectively been lazy and stupid for the last 60 years or so, it means that life is now going to be a bitch and then they’ll die, for lots of people.
Wow………Bought house 50 yrs ago all of 1100 sq ft…………..Still meeting our needs.
Also on Zerohedge today
“What Will You Do When Inflation Forces US Households To Spend 40% Of Their Incomes On Food?”
Answer: Eat one meal a day. Or, go to the Chink Cheap Buffet and eat 3 days worth of food in one sitting.
.
.
https://www.zerohedge.com/personal-finance/what-will-you-do-when-inflation-forces-us-households-spend-40-their-incomes-food
you better hope they don’t serve kimchi.
https://www.youtube.com/watch?v=Bwi_posgIoI
Dear God, what did I just watch? What was in the pits?
Damn, I love kimchi… rat turds no so much.
Lose weight… be less obese and healthier people, grumpy perhaps with their politicals which could result in some swinging from a lamp post. so either way good things could come about it…
80% of the chinese buffets around here went extinct since last spring.
In November 2012 we took delivery of approximately $90K of solar-kiln dried oak logs and building materials from Gastineau Oak Log homes of New Bloomfield, Missouri. We hired one of their recommended builders and he started the build in late January 2013.
I was here for the whole build, doing tasks as the “general contractor” might do. (Errands for the builders.)
Once the actual “stacking” started, it went quickly. This was very exciting… sitting on my back porch wall.
First day of stacking logs by Omer and his three sons.
A few days later… the work slowed again at this point.
There is a lot of preparation to get that second story of logs on correctly. Is why we hired this crew.
Father (Omer) is walking toward his oldest son in the furthest corner. Two boys (Marlin and Jonathan) in the foreground measuring thrice before cutting once.
Actually, Marlin and Jonathan were putting the stabilizing post into place. The Gastineau system involves a way to tighten the logs together after “cracking” causes them to warp. There is very little warp on these oak logs, but we did have to tighten an inch or so the first couple years. Since then, it seems to have settled firmly into place. We could still access the posts to tighten the logs, if necessary. We are coming up on 5 years. Probably solid.
Solid oak. We couldn’t afford it now. We couldn’t afford Omer and the boys either. The next year, they moved to Wisconsin and started building million dollar ranch homes.
I would bet you anything those are just as solid as my little log home in the suburbs of the sticks.
They quit building log cabins over a hundred years ago and for good reason . Why yes, I do have the experience to back of that claim.
Termites and decay were and still are the main bitches especially in log houses
a chinking we will do, a chinking we will do…hi ho the dairy oh a chinking we will do…
Glad I hung on to that box of toothpicks.
I’m so lucky that somehow I just happened to reclaim a 20′ x 50′ house that was built with 1960s construction grade lumber, about 5 yrs ago or so. What a co-incidence (I used that earlier on the 40% article). And I still have it stashed, except for a few pieces I’ve used. Under roof.
Good lord, I could sell everything and crash Llpoh. (You know, for you maroons, show up unexpected) Maybe even find an even deeper rabbit hole… nah, I like it here. Money ain’t but a thang.