Prices for New Homes Skyrocket Due to Pandemic-Related Lumber Shortage

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Lumber production is taking the latest economic hit caused by the COVID-19 pandemic.

The demand for lumber has increased significantly past suppliers' ability to keep up, leading to a shortage of lumber and housing, according to several reports.

"I've never seen anything quite like this," Brant Chesson, the president and CEO of Homes By Dickerson, told CNN, noting that his Raleigh, North Carolina-based company is having difficulty finding supplies.

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According to the National Association of Home Builders, the shortage has resulted in a 250% increase of framing lumber costs. Typical prices for 1,000 board feet of lumber sit around $200 to $400. Now, prices are well above $1,000.

The organization also reports that this bump in cost has pushed the price of an average new single-family home up by $35,872 over the past twelve months.

"It really comes down to supply and demand," Carolina Millworks owner Jimmy Cox told the Andalusia Star News. "Part of it is labor force and part of it is a shortage of raw materials. With all of those factors, it is kind of like a perfect storm."

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"Even with the price going up, people are still coming in," Cox added. "I'm hoping the price is going to go down. It has to go down or people will stop building."

Now, builders are relying on donors for solutions and calling on President Biden to implement assistance by temporarily removing the 9% tariff on Canadian lumber.

"These lumber price hikes are clearly unsustainable," said NAHB Chairman Chuck Fowke in a release. "Policymakers need to examine the lumber supply chain, identify the causes for high prices and supply constraints and seek immediate remedies that will increase production."