No, this isn't the price of some hot tech stock, or frothy cryptocurrency (that one comes next) — no, this is a chart of the price of wood, which has soared more than 115% so far this year.
Lumbering up
The rise in lumber prices this year continues the trend from last year, and means that lumber prices are now up almost 500% since April 2020 as shortages of lumber have coincided with rising demand for new homes. Last year, expecting a housing slump, many sawmills shutdown. However, the housing slump never arrived and demand for houses has remained strong, leading to shortages for lumber across the country.
According to an analysis by the National Association of Home Builders, the soaring lumber price has pushed up the cost of an average new single-family home by more than $35,000. The price rise is so extreme that builders are even reporting lumber and other raw materials as being stolen from sites. For economists who fear rising inflation, lumber prices are just another signal flashing red on their dashboard.
