Originally published by the National Association of Home Builders – September 2, 2020.
Updated by the National Association of Home Builders – March 1, 2021
According to the National Association of Home Builders’s (NAHB), lumber prices have skyrocketed since mid-April, rising more than 180% and increasing the cost of a single-family home by more than $24,000.
The prices listed below provide an overview of the behaviors within the U.S. framing lumber pricing market. The information is sourced each week using the Random Lengths Framing Lumber Composite, which is comprised using prices from the highest volume-producing regions of the U.S. and Canada.
John and Teri Goldsmith began the process for building their retirement home in Eastern Tennessee in February 2020.
On Aug. 31, however, the Goldsmiths received an unexpected call from their builder, who — while pricing another project — regretfully informed them that the price of lumber had gone up 100% since the last time he had priced it for them.
John and Teri have begun to research alternatives, including different building methods that may use less materials.
Study: Cost of Steel v. Wood
A recent study sponsored by the Steel Framing Industry Association (SFIA), “Costs to Build with Cold-Formed Steel Versus a Wood-Framed Building,” addresses framing costs on behalf of architects, building owners, and general contractors.
While the research was completed before the current spike in wood prices, “Costs to Build” establishes that CFS framing and wood framing costs in mid-rise structures are essentially the same, when construction insurance premiums associated with using the selected material are included.
Of course, the current skyrocketing prices of lumber make CFS framing the clear favorite from a pricing point of view right now.
Therefore, SFIA gathered pricing information and has issued a bulletin associated with the “Costs to Build” report.