Building a new home will cost more than expected in most cases, but now there is a new twist: getting the wood you need will cost you extra, too.
Sawmills across the country were shuttered in the spring because of state lockdowns, leaving California redwoods and Southern yellowing uncut which decreased the lumber available on the market. While that happened, a surge in home renovations and DIY projects skyrocketed.
Reduced supply plus increased demand will lead to higher prices, which is true for the price of lumber which has increased 134% year over year according to Fortune.
Home sales have hit their highest levels since 2006, jumping 36% year over year and home construction climbed 22.6% in July. Around 40% of lumber goes towards repairing and remodeling homes according to one expert. That 134% increase means the cost of building a new home jumps $14,000 according to a calculation by the National Association of Home Builders.
An expert told Fortune that lumber supplies will be encumbered for months, but could begin to level off by the end of the year.