Construction Industry

Construction Market Update August 2020

Our monthly market update provides insight into how we see the construction market and recommendation for our customers.

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Here at Joyne, we track over 6 Million material prices daily across the country to ensure your get the best prices and the most up to date data. Here is our update for August 2020 as we see it.


We’re seeing some significant price movements in the lumber commodity price, this has also been reported by the NAHB in July. We’re now starting to see these price increases translate into costs going up at retail stores, directly impacting construction costs. 

Chart showing Random Length Lumber costs and CME Futures price
Random Length Lumber vs CME Futures


Framing lumber prices, which are heavily influenced by the commodities market has seen about a 20% increase in cost since the dip in April and while we are largely back to where the prices were before the dip, the continuing rise in the underlying commodity price leads us to expect these costs to continue to increase over the coming months. 

Joyne building materials price analytics chart for Dimensional Lumber
National Average Retail Cost - Dimensional Lumber


This price increase is being led by the restrictions that Covid-19 placed on the lumber mills. Mills are now feeling the effects of the shutdowns from the first few months of the restrictions, then were caught out as the expectation was the construction would slow much more than it has.


Lumber in general from the mills is being sold into September and certain products like 2x4x16’ and 2x6x16’ are getting harder to source and equally expensive. 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

a chart showing the monthly price changes of several lumber products.
Lumber Product Price Changes

 

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 10% increase in lumber costs for an average house per month until pricing stabilizes. 


Should you wish to source the best prices lumber, feel free to contact us and we can find you the best deals on building materials nationwide.


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