Soaring lumber prices hammer new home construction | Local News

And while this will come back into balance at some point, there is no indication that this will change anytime soon, said Shawn Church, editor of Random Lengths.

“The market is currently at record highs and still rising,” he said. “We haven’t seen this type of volatility in any record run in the past. It’s hard to see anything stopping it. “

So far, recent increases in costs have not been passed on to customers as builders have already signed contracts with them that set prices and did not include provisions for subsequent reimbursement of additional costs. As a rule, it can take six to eight weeks from the time the contract is signed for a shovel to hit the ground.

“By then the wood has cracked,” said Marrano.

This means that the builders now have to bear these costs. For Marrano and Natale, that’s about $ 5,000 to $ 10,000 per house, depending on the size of the house and the type of wood. Nanula estimated Essex’s additional cost to be $ 10,000 to $ 14,000 per home.

But the builders are starting to raise the prices for new contracts.

“Traditionally, we don’t talk to customers about sawn timber,” said Nanula. “But if you get a $ 10,000 to $ 14,000 increase overnight and you don’t have a contract, we’ll have these talks.”

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