Many in the residential construction industry, including clients, are worried about rising costs, especially lumber prices. Particularly concerning are current lumber shortages, and subsequent price increases. These are a result of a combination of factors, including:
- Early 2020 forecasts for low demand. This led to production curtailment before the pandemic;
- The impact of COVID-19;
- Rail line transportation issues; and,
- Much stronger spring and summer demand than anticipated.
Made to Last is partnering with organizations like the Canadian Home Builders’ Association on this issue to lobby for government support. There has been formal correspondence with the Minister of Small Business, Export Promotion and International Trade, and the Minister of Innovation, Science, and Industry to reinforce industry concerns and to seek support for actions that could mitigate the impact of shortages and price increases.
What do Increasing Lumber Prices Mean for Homeowners?
Framing lumber for a new home build or addition can make up about 1/5 of the overall cost to build. The availability and price of lumber can affect many areas of the construction process. Some of these areas include timelines for construction and overall cost to build. According to the Canadian Home Builders’ Association, “price escalations on lumber, floor sheeting, OSB sheathing and more are increasing the cost to build a typical single-family home by upwards of $10,000.”
What is Made to Last Doing for our Clients?
- We compare pricing for similar products prior to ordering to see if alternatives could be more cost-effective.
- Our company has strong buying power through multiple suppliers to get the best competitive pricing.
- We have dropped our markup for larger projects to help offset rising costs.
Interested in learning more about the cost to build in the Cowichan Valley on Vancouver Island? Visit our earlier blog post What is the Cost Per Square Foot to Build a Custom Home?, or Contact Us if you have further questions or concerns about how lumber prices could affect your project.