Every builder and construction manager tells me this same story almost every day. The price of lumber is way up and that will be reflected in project budgets. Even large scale projects are starting to look at hedging lumber costs before they break ground.
So while it is not a bad in the photo below, the numbers are pretty staggering. According to the Federal Reserve Bank of St. Louis database, the price index of “Softwood Lumber”, mainly used in single family house framing, is up 88% from February 2020 to February 2021. The price index of “Plywood”, used for roofing and siding is up 44% over the same period.
The replacement cost of typical single family homes are up tens of thousands of dollars, making Fix and Flip projects more economic over new construction. We may also see alternative methods and materials go into construction from 3D-printed concrete home to shipping containers.
Fed Softwood Lumber index: https://lnkd.in/dgwUAXA
Fed Plywood index: https://lnkd.in/dkwnpUw
Fort Schuyler Advisors
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