While Lumber Prices Soar, Learn How WoodHaven Has Kept Prices Stable

First Things First: What is Going on with Lumber Prices?

Since the pandemic shut down many parts of the world in early 2020, lumber prices have steadily risen and remain high even today. For example, some contractors have reported 2×4 prices being quadrupled. So why is this? The basic answer is America’s largest corporate lumber mills are charging sellers more, which results in higher consumer costs. The deeper answer for growing prices involves supply, demand, and maybe even some dirty play from the mills.

First, demand for lumber has greatly increased. If you’re trying to build a new home right now you’re far from alone. The number of new house starts in America has been gradually growing each year since the crash in ‘08, and 2020 was the highest year yet. In addition, the pandemic meant many people went without vacations, travel and other expenses, and many chose to put that money into their homes (where we were all spending all of our time). Both home renovations and new builds have increased the demand for raw materials like lumber.

The second factor is available lumber supply. Much of the construction lumber used in America came from Canada, but recent years have seen costly tariffs placed on those imports and COVID has slowed down all international shipping. This has given the corporate American lumber mills an advantage. While COVID did slow down some mills and shipping, it’s not the major factor affecting supply.

Insiders in the industry are claiming that the biggest American lumber mills are creating an artificial shortage on supply side because of the limited quantity they’ll release (much like the diamond industry does).This isn’t all saw mills of course, but the biggest ones in America that produce the bulk of the lumber used in home construction.

With demand high and seller supply intentionally kept low, the mills know they can raise prices as much as their customers are willing to pay. Eventually prices will likely balance out as people are only willing to pay so much for a product. Don’t expect them to drop soon though, as lumber is essential and the demand is expected to remain high for some time.

Want to learn more about lumber prices? We suggest this video from YouTuber “DIY With Dave.”

Why Prices Haven’t Gone Up at WoodHaven

Many of our competitors have experienced supply shortages or have had to increase their prices to keep up with the market. At WoodHaven, we don’t source our lumber from corporate American mills. Instead, we’ve worked with a local Amish saw mill right outside Mio for nearly 30 years. We have a great relationship with this mill, and they even cut our wood to our exact specifications. This mill isn’t involved in the intentional price gouging going on, and luckily our costs haven’t risen.

Like our mill partner, we’re not interested in playing the market. Of course we could increase our prices like everybody else, but that’s not right. We know the market will settle down and come back, and we’re not here to make as many bucks as we can while the iron is hot.

Our Suggestion? Don’t Build, Transform!

Want to really save? A new build is the most expensive option right now, but you can still transform your home into something completely new. Sick of your vinyl exterior? Replace it with beautiful log siding. Imagine the natural texture of cedar, pine, or barnwood on your home’s exterior. Beautiful with brick or by itself.

See more about how WoodHaven can transform your home’s current exterior.