Home-renovation boom sends lumber price to record high

New York

THE relentless rise in lumber prices shows no signs of abating as the pandemic keeps people at home, spurring a home-renovation boom.

Lumber futures climbed to a record US$1,004.90 per 1,000 board feet on Thursday, rising for the eighth session in nine. Prices have climbed about 40 per cent this year, fuelling concerns for home builders across the US, with the biggest industry group calling on the Biden administration to help boost supply.

"There's just tremendous optimism that there's going to be plenty of demand to build homes," said Shawn Hackett, president of Hackett Financial Advisors in Florida. "We're in a bubble mentality that is unsustainable. It's a classic bubble scenario."

Prices have been spurred by strong demand amid a boom in home remodelling and construction fuelled by stay-home orders. The onslaught of demand has handicapped producers' abilities to restock inventories quickly enough, further supporting prices. BLOOMBERG