Joyn'e building materials September Update - Lumber prices continue to rise
Here at Joyne, we track over 6 Million material prices daily across the country to ensure we can find you best prices on building materials and the most up to date data. Here is our update for September 2020 as we see it.
We’re seeing continued price increases in the lumber commodity price, which is driving the price of framing lumber up across the country. Mill's are sold over capacity and are prioritizing supplies for larger customers. This is leaving some of the smaller lumber yards with limited supply. Some lengths are getting difficult to source, even for us.
Framing lumber prices, which are heavily influenced by the commodities market has seen a ~25% increase since July, with some items increasing over 44%. With Lumber Futures prices higher than the random lengths cost, we expect these cost increases to continue, possible accelerating over the coming months and see no end in sight for the price pressure.
We are now seeing significant price increases in plywood products like OSB, with the average price jumping 44%. Treated lumber is also getting difficult to source due to similar supply constraints. The chart below shows the price movements of several specific lumber products, for a live update on these prices, check out our material prices dashboard
As a rule of thumb, we expect a 20% increase in lumber to lead to a 10% increase in a house pack.
Our recommendation is to forward order lumber products where possible. If not possible, plan on a 15% increase in lumber costs for an average house per month until pricing stabilizes. For new contracts, we recommend including an escalation clause for material prices, the NAHB has sample wording.
Should you wish to ensure you are getting the best priced lumber, feel free to contact us source you the best deals on building materials nationwide.