Cost of lumber rises to highest levels since Covid pandemic

A combination of factors has driven lumber prices to their highest levels since the Covid pandemic.

In recent weeks, spot market prices for framing lumber were up 14.9% yearly. Prices have been rising due to three primary factors.

First, seasonal activity with construction picking up in the spring increases demand for lumber. Second, expected tariffs on Canadian wood has led buyers to stock up, bumping up prices further.

Also, concern over weaker demand and looming tariffs led two large lumber companies to slash sawmill production at three British Columbia mills and some southern U.S. mills. The mill production cuts backs amounted to a total of 700 million board feet, according to a report at GlobeSt.

Additional cost pressures could result from supply chain disruptions, transportation cost hikes, and interest rate fluctuations, industry watchers say.