US home construction costs remain high despite a drop in lumber prices

Posted on August 16, 2024   |  

Lumber prices, which hit a record high of $1,711 per thousand board feet in May 2021, have dropped to $524.50 in 2024, but they are still considered expensive.

Local woodwork companies state that even with the price drop, lumber costs remain high.

According to the National Association of Home Builders (NAHB), building a typical single-family home needs over 2,200 square feet of softwood plywood and about 15,000 board feet of framing lumber.

Changes in softwood lumber prices directly affect the cost of building new homes.

High lumber costs, along with rising interest rates, are making homes less affordable.