Prices paid for goods used in residential construction have increased 6.8% in the past 12 months, including rising 2.1% in January, according to the latest Producer Price Index (PPI) report. According to the Bureau of Labor Statistics (BLS), prices paid for softwood lumber increased 13.9%. The National Association of Home Builders (NAHB) said lumber prices have remained “extremely volatile” since the 88.5% increase between April and September 2020. Prices then fell 22.9% between September and November before increasing 28.7% from November to January. Data from Random Lengths suggests the index will increase further in February, possibly surpassing the record high index reading set in September.
Lumber Prices Increase in January, Continuing Three-Month Rise
Prices have remained extremely volatile since the outbreak of the coronavirus pandemic.
