The pandemic-induced lumber shortage has driven up the price of the building material. According to the National Association of Home Builders, the spike has caused the average price of a new single-family home to increase by more than $24,000 since this time last year.
A home improvement or building project that involves scrap iron or steel will set you back more now than it did in early 2020.
With the increase in building, the price for lumber goes up. This is a simple supply and demand situation that we are currently experiencing. Until the supply starts to catch up with the demand, people will continue to pay very high prices for their lumber. This is a factor that will apply to all types of lumber, including plywood.
“Looking ahead, hope abounds that construction starts will soon begin a more robust rebound forecast in the first quarter. Plywood prices will rise 39.8% this year, says IHS Markit.
When will plywood prices drop?
Plywood and lumber prices overall experienced an extreme spike in the early part of 2021, peaking in early May and dropping quickly to levels approaching but not yet matching pre-pandemic prices in July.
What is the average price of plywood?
The price of plywood varies significantly depending on the size and thickness. A 4X8 sheet can range from $7 to as much as $60. As an example, for a 1/4 inches thick board, you may pay $8, while an 11/32 inches thick panel will cost around $18. You can get a better idea through our chart below.
Your price could vary depending on how much the roofing company charges for labor, but generally you can expect to spend between $70 to $100 for each sheet of plywood. A 4 x 8 sheet of plywood covers about 32 square feet of roof area—and the average roof measures about 3,000 square feet.
Why are lumber prices skyrocketing?
There are three primary reasons why lumber prices were much higher than normal. There are fewer lumber mills. The first reason has developed over many years: a consolidation in the number of sawmills to refine the raw product. In fact, employment at sawmills is down 30% from 20 years ago. Sawmills are capital intensive endeavors.
You should be wondering “Why wood is insanely expensive Right Now?”
The price of wood has risen dramatically over the last year “The average lumber historically has been between $300 and $400 per thousand board feet. Right now, it’s over a $1,000. I see it in the $700 or $800 price range by summer.”.
Another common inquiry is “Why is lumber so absurdly expensive?”.
While hardwoods require less upkeep, they do tend to be more expensive on area in question. With so many options for patterns and finishes it’s easy to see why wood board siding is a popular.
When will lumber prices go back down?
Lumber and plywood prices have jumped through the roof in the U. S. Building materials prices will retreat in 2022, returning to pre-pandemic levels by 2023.
When is the price of lumber expected to drop?
Since the last time we touched on the subject in early September of 2020, the cost of lumber has already started to decrease substantially. It has dropped from $948 per thousand board feet in September to now $565 per thousand board feet in early November.