The lumber inflation bubble has popped, but why do prices remain high?

Lumber
Photo credit GettyImages

Since the pandemic began, more Americans have opted to build new homes, as homeowners have been cautious about selling. Because of this, lumber prices have soared above their pre-pandemic levels.

A report from Fortune found that the price of lumber has soared to 300% above its pre-pandemic price tag, making it harder for home builders and DIYers.

However, in recent weeks the price of lumber has dropped from its springtime highs. This has been a good sign for those trying to build new homes as lumber is typically one of the highest costs, along with land acquisition and labor.

In Minnesota, Sunny Bowman, the president and owner of Dakota County Lumber in Farmington, has seen the prices rise first hand.