New BiggerPockets Article: Why Is Lumber So Absurdly Expensive?

Lumber prices are finally starting to come down (a little). But what caused them to skyrocket and still remain absurdly high? Well I'm glad I asked that question for you as that's what I answer in my latest BiggerPockets piece.

​"With historically low interest rates, people want to buy houses. But we have a housing shortage, and the market is squeezed with historically low rates of inventory. For example, in Jackson County, Missouri, where I am, there are only 0.6 months of inventory—literally one-tenth of what a 'balanced market' would be. Delayed construction, low cost of funds, and historically low inventory have sent demand through the roof.

"At the same time, supply is down—way down.
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"Those same shutdowns for housing construction affected the lumber industry even more. As the Deseret News points out: 'A lumber industry that saw contraction and consolidation following the 2008 housing crisis and subsequent Great Recession was further hamstrung by forced shutdowns and workforce reductions under rules aiming to curb the rise of COVID-19.'"

Please check out the article here.

And check out our video on the subject as well.