For residential building contractors, few building materials are more important than lumber. Whether you work on new builds or remodeling projects, the ability to get quality lumber allows you to deliver timely work that your clients love. Unfortunately, 2021 has seen lumber prices skyrocket. These record-breaking prices represent a staggering increase from the year before when prices remained steady early in the home building boom. Needless to say, this presents new challenges for local contractors. Here's a closer look.

Why Have Lumber Prices Gone Up So Much?

Supply and demand have always dictated lumber prices, but 2021 is seeing new extremes in both categories. During the height of the pandemic in 2020, lumber mills largely shut down, essentially cutting off production. At the same time, low interest rates in the housing market and an increasing number of remote workers created high demand for new home construction. Families stuck at home also bought lumber for DIY projects like decks.

The pent-up demand for construction has lasted well into this year, and lumber mills have struggled to get back to full production while still remaining compliant with social distancing measures. A reduction in exports of Canadian lumber further constrains the supply—all of which has driven up prices.

How Surging Prices Are Affecting Construction Contractors

Many construction contractors are finding themselves having a hard time getting the lumber they need due to a lack of availability and increased cost. The need to place a higher upfront bid for materials can put a strain on a builder's cash flow.

The good news is that the demand for new homes and home improvement projects doesn’t seem to be diminishing. Even as contractors raise prices to account for the cost of lumber, homeowners and businesses are still willing to pay. Contractors must be prudent in raising their prices to cover their own increased expenses.

Despite the challenges of today’s market, Huber Lumber remains dedicated to keeping their lumber prices as affordable as possible for contractors and homeowners in the Cincinnati, OH, area. With over 110 years of combined experience, their community-oriented team is dedicated to helping contractors and DIYers get the materials they need without breaking the bank. To learn more about this home improvement supply store, visit them online or call (513) 731-4035.