Here’s what’s happening in the lumber industry to make prices inflate.

Why are lumber prices so high? Lumber prices have increased 377% from just a year ago, so everyone is wondering what’s going on in the industry. I have a client in the lumber industry and have spoken to many others in the industry who know what’s happening, so today I’m sharing what’s going on with lumber. The first thing to know is that lumber is a just-in-time product.

Feel free to watch the full message above, or use these timestamps that will direct you to various points in the video.

0:00 — Introduction to today’s topic

0:45 — A fundamental point about the lumber industry

1:35 — Mills were shut down during the pandemic

2:25 — Then a housing boom arises

3:10 — Supply chain issues

3:45 — Then a huge winter storm hit Texas: the largest manufacturer of resin

4:35 — Due to all this, many other materials and supply chains were affected

5:40 — There’s currently a shortage of workers at the mills

6:45 — The housing boom is forcing people to act

7:55 — All this doesn’t mean you can’t update your house

8:55 — Wrapping up today’s topic

I’ll keep you posted about this as we continue through this unusual time. If you have further questions about this or any other real estate topic, call or email me. I would love to be your real estate resource.