Why Lumber Prices So High?

Wood products prices typically fluctuate more than most goods, because homebuilding can move up or down much faster than sawmill capacity can. ... Lumber and plywood prices are so high now because of the short-run dynamics of demand and supply. Wood demand shot up in the summer of pandemic.

Will lumber prices come back down?

The price of lumber may be crashing—but we're still far above pre-pandemic levels. The cash price is still up 211% from spring 2020. Prior to the pandemic, lumber prices fluctuated between $350 to $500 per thousand board feet. "Prices will continue to decline for the next few weeks and gradually stabilize.

Why is wood so expensive in 2021?

The lumber industry can't keep up with demand, with prices up over 85% year-to-date and 280% in the past 12 months from May 2021. It's limiting a shrinking housing inventory and contributing to lack of affordability for first-time buyers.