Major Increase in Lumber Prices Coming to New York State
The United States is very dependent on Canada for its softwood lumber. Canada is the largest distributor of lumber to the United States. Though, the United States may see lumber prices soar through the roof once again.
The latest time was during the COVID-19 pandemic. Remember how expensive wood was back in 2021-2022? Housing costs absolutely went through the roof during the pandemic. People looking to build homes were looking at possibly a 15% increase in price.
Now because of the wildfires in Canada, there could be a massive shortage which could result in a major increase in lumber prices. As of Wednesday morning, there are over 200 wildfires in Canada which have resulted in over 8,000,000 acres of forest fires.
In the United States, where demand for lumber exceeds what domestic mills can supply, housing and other industries rely on Canada for stable, predictable access to quality products. The 2006 Softwood Lumber Agreement (SLA), which provided stability and predictability for industry on both sides of the border, expired on October 12, 2015", according to Canada's website.
According to the chart from the Home Construction Index, in the tweet below, the price of housing construction is already on the rise.
The smoke from the wildfires has made its way to the United States and specifically had a major effect in New York State. In fact, you probably have gotten an alert on your phone or on your computer notifying you that there is a 'poor' or 'low' air quality alert in your area. Nearly all of New York State has received one of these notifications.