Dealing with Lumber Price Increases

Credit: NAHB

Lumber prices have continued to rise after hitting an all-time high last September.

The National Association of Homebuilders queried builders in its April 2021 NAHB/Wells Fargo Housing Market Index survey as to how they are dealing with the problem. In descending order, the survey results were:

  • Adding price escalation clauses to contracts: 47 percent
  • Pre-ordering: 29 percent
  • Obtaining price guarantees: 22 percent
  • Pausing between laying the foundation and starting framing: 15 percent
  • No action: 13 percent
  • Adding shared price clauses to contracts: 10 percent
  • Employing lumber options or futures: 3 percent. (Source)

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