An NAHB analysis of lumber price trends in 2020 and 2021 adjusting for inflation indicates that while price differences are smaller in real terms than nominal, even the inflation-adjusted price of lumber set records in both years. According to the association, the average price of framing lumber, when adjusted for inflation, was 17% above its 25-year average. Additionally, over the 24-month span in 2020 and 2021, real—inflation-adjusted—prices of lumber were 37% above the historical average.
Inflation-Adjusted Lumber Prices Set Records in 2020 and 2021
Even when adjusting prices from nominal to real terms, the level of price growth for lumber was still above its historical average in the 24-month period.
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