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Lumber prices climb as demand stays high Date published: 5/20/2004
Building a new home is likely to cost at least $1,000 more now than it did five months ago, thanks to increased lumber costs. Lumber prices are soaring, mainly because of high demand for the product and new, more expensive lumber now required for building decks. In an area where growth is a constant issue, the price increase means shoppers everywhere are shelling out more cash. In one year, softwood lumber rose from $280 per 1,000 board feet to $460, said Michael Carliner, economist for the National Association of Home Builders. A 4- by 8-foot sheet of plywood has climbed from $7.81 to $16.64. The price for that size sheet of oriented strand board, a plywood substitute used primarily for floor and roof sheeting in homes, has gone up from from $6.30 a year ago to $15.68. A typical 2,000-square-foot home uses about 16,000 board feet of lumber, according to the NAHB. Carliner sets his prices according to Random Lengths Publications, which is an information source for the wood products industry. A spokeswoman for Lowe's Home Improvement, which operates a store locally in Central Park, said her company also uses Random Lengths as a pricing guide. Home Depot in Stafford and 84 Lumber in Fredericksburg also have raised prices. "Although the prices are all increasing, it just seems like the housing starts and people working on their homes haven't stopped, which increases the cost even more," said Shawn Cahall, manager of 84 Lumber. "It's like a big cycle." National housing starts last year totaled 1.848 million, a 25-year high, according to a press release from the NAHB. Stafford, Spotsylvania, Caroline, King George and Orange counties last year issued 3,581 building permits for single-family homes. Permits have remained steady since 1996 and show no signs of slowing, despite rising costs. Dan Sandoval, manager of Wayne Homes in Fredericksburg, said lumber accounts for about 15 to 20 percent of a home's price tag. Due to lumber costs and increases in electric and copper, Wayne Homes increased its prices 1 percent last month, he said. But the company still sold 21 houses in four months this year, about 10 more than they projected, Sandoval said.
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