Unexpected Lumber Demand Adding $25K to New Home Costs

When discussing the recent nationwide lumber crisis, Burton Lumber manager, Caleb Williams said “It’s a unique and unprecedented time. It’s a volatile market that changes almost daily. We’ve never seen anything like this and never expected it,”

The dramatic rise in lumber prices has increased the price of the average new construction single-family home by $24,386. All this since April 2020. (National Association of Home Builders).

Demand isn’t the sole cost of rising home prices in Utah. The cost to build a home is also rising as a result of these out-of-control lumber prices.  

“I’ve been in (the industry) 25 years and there’s never been a big jump like this. Forever it was like two to three bucks for a 2×4 stud,” he said. “Now it’s hitting like seven dollars—that’s triple the price for a 2×4.” – Daniel McArthur, Pine Canyon Homes.

Families save up money to finish basements and by the time they are ready to start construction, the price has changed. Lots of times he ends up splitting the price increase with his clients. It’s a big hit for both of us.”

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