Even after adjusting for inflation, softwood lumber prices in both 2020 and 2021 were record-setting, according to a report from the National Association of Homebuilders.
The industry benchmark Random Lengths Framing Lumber Composite Price and the lumber futures price – the two most common price quote outlets – do not adjust for inflation.
The FLCP price was more than $1,500/thousand board feet in May of last year, almost tripling its pre-pandemic record. The framing lumber price averaged $550 in 2020 and $850 in 2021, both of which were records.
Even after adjusting prices for inflation, framing lumber in 2021 was 17% more than its 25-year average and broke the previous record from 1996.
The report calls the 2020 and 2021 price increases “unprecedented.” The FLCP has more than tripled since last August, and lumber futures have approximately doubled. Even though mill prices have fallen slightly in the last two weeks, relief will depend on a longer-term downward trend.
Increased sawmill output is the only solution for rising prices, the report states, and U.S. softwood output in the last 18 months has been “negligible.” (Source)