Softwood lumber price increases affecting multifamily housing residents.
While the rising cost of softwood lumber products has impacted builders across the construction industry, the effects of price increases are even wider reaching. The price change between April 17, 2020, and July 8, 2021, has increased the average price of a new multifamily home by $9,990, according to the National Association of Home Builders (NAHB). That’s $92 per month in additional rent spending for residents at a new apartment because of the increase in lumber.
In April 2021, NAHB reported households were paying $119 per month more in rent due to the rising costs in lumber between April 2020 and April 2021. Framing lumber prices have dropped dramatically since early June 2021—still about twice as much as April 2020, and framing lumber is only one softwood product used in housing. NAHB’s estimates include other products such as plywood, oriented strand board (OSB) and particleboard. OSB prices have climbed nearly 500% since April 2020, while plywood has jumped more than 200%.
NAHB cites wood product industry publication Random Lengths that the average cost for softwood lumber products for a multifamily home have increased to over $14,000, a nearly 150% increase between April 17, 2020, and July 8, 2021.