KANSAS CITY – After reaching historic highs, the price of lumber has dropped to pre-pandemic levels. The cost of a 2x4 now back to what it was two years ago.
As reported by Clarisa Diaz at Quartz: The pandemic threw lumber supply and demand out of whack ... Prices peaked in April 2021 at an average of $1,500 per 1,000 board feet in response to a surge in home renovations and construction. By September 28 of this year, lumber prices were down 70% to $432 per 1,000 board feet, reports Diaz.
"Well, raw materials are roughly a third of the cost of a project, whatever it is, whether remodeling a custom home, or building a wood frame construction," said home improvement host Scott Mosby on KMOX. This could have a big impact on your new home or home improvement, he said.
Other costs around home construction could begin falling too, Mosby added, as projected demand slows as interest rates are hiked to slow inflation spread.