lumber price increases in new homes

Why is the Cost of Lumber so High?

By Ryan Waldron on September, 10 2020
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Ryan Waldron
Ryan Waldron

Chief Operations Officer
Ryan has 16+ years’ experience in construction, purchasing, and operations. He was recognized as the 2016 Builder of the Year by the Temple Area Builder’s Association.

One of the major components to build new homes is lumber, not just framing lumber, but also oriented strand board (OSB) which is used as sheathing for the exterior walls and roof.




Rising lumber prices are not something new to the home building industry, they've been on the rise for years, but had a significant increase when additional tariffs were imposed on Canadian lumber.

ICYMI: Learn more about the overall Impact of Tariffs on New Home Prices.

The National Association of Homebuilders (NAHB) have addressed the growing concern in the home building industry with the White House in hopes of bringing lumber prices down "by calling on domestic lumber producers to ramp up production to ease growing shortages and making it a priority to work with Canada on a new softwood lumber agreement that would end tariffs averaging more than 20% on Canadian lumber shipments into the United States."

Read the full article: NAHB Seeks White House Action on Soaring Lumber Prices

The COVID-19 pandemic has also had a significant impact on lumber production, which combined with the increased demand for new homes in the real estate market, has led to a shortage of materials in the market causing potential delays due to supply shortages.

Why is OSB so Expensive?

Also contributing to the shortage, the recent hurricane has left several OSB plants without power for weeks and caused others to perform at significantly reduced capacity which added further strain to the supply chain.

Robert Dietz is the Chief Economist for the NAHB and recently published an analysis on the surge in residential construction and corresponding lumber prices.

"Residential construction is leading the economy as housing demand remains strong and supply is tight."

Read the full article from Eye on the Economy here: Surge in Home Construction, Lumber Prices

Impact of Lumber Prices on New Home Prices

For over 13 years, Omega has been focused on lean construction & processes to allow us to keep our costs low and offer affordable homes that are competitively priced.

Yes, our new home prices have gone up as a result of the lumber increases; however, our team has worked closely with our vendors & trade partners to minimize the impact and because we are continuously working to improve in all areas of construction, we are proud to be able to offset some of the incurred cost and have not had to raise our prices as much as others throughout Texas and the United States.

Learn more about our recent change to Truss Roofs that helped to reduce the need for oversize lumber which is in high demand, avoiding potential delays and adding many benefits!

Our Construction and Purchasing & Estimating Teams are working tirelessly to avoid delays on job sites as a result of the shortage and are hopeful that there will be minimal impact to our construction schedules.

Not all home builders are the same.

To get started, check out our latest guide with 3 Questions to Ask Your Homebuilder:

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