Many types of construction projects require lumber.
Even a small renovation project sometimes calls for wood of various sizes.
When heading to the local hardware store, you may find yourself surprised by the high prices of lumber.
Even smaller pieces can fetch an expensive price.
Considering that some types of lumber used to be extremely cheap, the price hike may confuse you.
Here are 10 reasons lumber is so expensive.
Why Is Lumber So Expensive? (Top 10 Reasons)
1. High Demand
Lumber is always in demand.
Whether it’s framing a new house, a new business, used in furniture making, or various other projects, there’s always a need for lumber.
That sort of high demand increases its price.
In basic economics, the price of goods is primarily determined by supply and demand.
When demand is high for a good, then the price increases.
When demand is low for a good, then the price decreases.
With an existing demand for lumber, the price is always going to trend toward the higher side.
There are certain times of the year in which the demand for lumber is higher than normal.
Warmer months, especially, see an increase in demand for lumber because it’s the best time to do renovation and construction projects.
Everyone is trying to get their hands on lumber.
The opposite is true during the colder months.
Since individuals are unable to do as many projects outside, the demand for lumber decreases, and its price goes down.
Lumber is expensive because the demand for it is usually high.
2. Logging Enterprise
To receive lumber, logging companies have to cut down trees in various parts of the world.
There are a lot of problems in the logging industry with deforestation being a serious issue.
In Brazil, in particular, some logging companies don’t put much care into the practice.
As a result, there amount of wood in the world is drastically decreasing.
Although it’s difficult to see that it’s decreasing since there are still a lot of trees in the world, it’s a serious problem in the areas where logging occurs.
Some logging companies do a better job of ensuring that they’re replanting trees that they’re cutting down.
This also means they take on more expenses to do their job sustainably.
Since logging becomes more expensive, they need to pass those costs on to the buyer.
The buyer, a hardware store or lumber store, then has to cover the cost as well.
That means they put an expensive price on it.
Lumber is expensive because logging is expensive with sustainable practices.
3. Limited Resource
Lumber is also a limited resource.
While replanting is a method to help curb deforestation, the rate at which trees grow is slower than logging.
Some types of lumber, like bamboo, are less limited.
That’s because bamboo tends to grow fast.
It’s easier to replant bamboo and keep the status quo than it is other types of wood.
Any type of resource that’s limited comes with a higher price.
That’s because it means there’s minimal supply to go around.
Supply cannot reach demand, so the price increases.
If deforestation continues to go unchecked without sustainable practices to offset it, then the price of lumber will only increase.
Lumber will become harder and harder to come by.
Lumber is expensive because there’s a finite number of harvestable trees in the world.
4. Rare Types Of Lumber
The type of wood that you buy can also influence its price.
There are common types of wood and rare types of wood.
Common types of wood are easy to harvest and they’re usually plentiful in the world.
Some examples include:
- Fir
- Cedar
- Birch
- Pine
- Spruce
They’re often used in building construction and other construction projects like furniture and tools.
Rarer types of lumber are for special-case uses.
They’re sometimes used in the creation of musical instruments or art pieces.
Since they’re rarer, it costs a lot more to use them.
Some examples of rare types of wood are:
- African Blackwood
- Ebony
- Sandalwood
- Holly
- Pink Ivory
- Brazilian Rosewood
All these types of wood are harder to find in the wild.
They also offer unique features that aren’t in any other type of wood.
African Blackwood, for example, is a naturally dark wood that looks incredible.
The average price for African Blackwood is $100 per board foot.
A single log can cost around $9,000.
After processing the log into lumber, the price jumps to $13,000 per cubic square meter.
One of the reasons this type of tree is so expensive is that it’s small and slow-growing.
Logging companies have to be mindful of how many they cut down since it’s difficult to replace it.
This wood has a long history of use in musical instruments.
Another example is Brazilian Rosewood.
This incredible type of wood can come in an array of darker colors.
You may find pieces of lumber with dark red and yellow sap lines or even darker purples.
Thanks to its incredible color and durability, carpenters use this type of wood for various flooring and furniture pieces.
It needs little maintenance due to its durability and even wards off insects and decay.
The reason it’s so expensive, besides its unique color, is that logging companies exploited it heavily for a few years.
It’s now carefully controlled which means only a few pieces of lumber are available at a time.
The average price for one board foot of Brazilian Rosewood is $70.
Lumber is expensive when you’re looking to buy a rarer type of wood.
5. Processing
Before lumber goes on the floor for sale, it has to go through several processing steps.
The logging company either sells the logs as they are to a lumber store, which can process them themselves, or they do the processing for them.
Some companies will even hire a third party to do the processing for them.
To process a log, the wood has to undergo several steps of cutting.
Because construction workers and furniture makers need different lengths and widths of lumber, they cut each log into various sizes.
It might undergo a wash or other steps to further prepare the lumber for construction use.
Once it’s ready, the company can then ship it to the lumber store.
If the lumber store does the processing themselves, then they need the tools to do so.
These are large and dangerous machines that only experts should use.
Since it costs a good amount of energy to run the machines, the lumber company takes on a lot of costs to process the lumber.
These machines cost a lot of money and need frequent maintenance to operate optimally.
That all adds to the final process of lumber.
The log itself isn’t as expensive as the lumber that comes out of it.
Since they put work into the lumber, that work needs payment.
Lumber is expensive because of the processing it undergoes.
6. Treated Wood
Some types of lumber may go through an additional processing step that also drives up its price.
Wood that’s used for outdoor use, including building construction and decks, often goes through a treating step.
This step makes the lumber long-lasting when subjected to direct water exposure and insects.
The goal of treated wood is to last a long time in conditions that would normally rot the wood.
To achieve this, the technicians place the wood in a pressurized chamber.
The chamber simultaneously uses pressure to dry out the wood and also adds various chemicals to it.
The chemicals land on the wood’s surface and soak into it by a few centimeters.
These chemicals vary based on the purpose of the wood.
For decks, the chemicals tend to help with making the wood more water-resistant and anti-pest.
For docks and other types of wood that will have direct contact with water, they also use water-resistant chemicals and certain chemicals that can ward off water bugs and fish.
The lumber might also go through more different steps to receive treatments for fire resistance and other resistant properties.
The result is a safer type of wood that can last for years before it starts to deteriorate.
Since pressure chambers and chemicals are expensive, the price of treated wood is higher than untreated wood.
The payoff is that you don’t have to replace the wood as often as you do untreated wood.
In the long run, using treated wood could end up saving you more money.
However, at the time of purchase, treated wood is expensive.
Lumber is expensive if it’s treated.
7. Shipping Costs
The location of where lumberyard and hardware stores get their lumber also impacts its price.
The further the store is from the source of logging, the more expensive it’s going to be.
A lot of wood comes from the Amazon in South America.
Stores in the United States have to pay a high price for this type of wood since it travels a long way to reach them.
Logging companies first have to ship the unprocessed logs to a processing facility.
That means they need a specialized type of truck designed for log hauling.
Since logs are extremely heavy, the truck is also heavy-duty.
It also needs to be able to drive through unpaved roads since the trees come from deep in the Amazon.
The cost of running and maintaining these types of trucks is high.
Once the logs finish processing, they then need to go to the store.
In some cases, that might mean they’re traveling by ship.
The company will need to rent a storage container to house their lumber.
That’s expensive.
Those who are shipping their lumber by road will also face expenses.
Fuel costs, drivers’ wages, and various expenses along the road can add up.
The further a store is from the logging company and the processing facility, the more money it takes to reach the store.
The weight of lumber is also high.
As with anything heavy, it costs more to ship it.
Since the lumberyard or hardware store is taking on a high expense by having their lumber imported, they have to make up for the cost.
That results in a high price on lumber.
Lumber is expensive because of shipping costs.
8. Labor Shortages
Whether it’s because of COVID-19 or striking workers, labor shortages also impact the price of lumber.
The COVID-19 pandemic of 2020–21 impacted the lumber industry in several ways.
Workers were unable to cut down trees.
Factories were unable to process the existing logs they had.
Stores, which faced some closures, didn’t have the inventory or staff to keep the lumber stocked.
That slowed down the supply of lumber which made the price skyrocket.
This is coupled with the increase in demand for lumber to complete home projects.
Since people were working at home, they had more time to work on home projects.
Some even wanted to transform a part of their home into a proper office.
With more people needing lumber and a small supply, the price for it rose.
Even though many factories and logging companies are back in working order, the labor shortage that caused the deficit is still impacting the price of lumber.
That’s because suppliers are trying to fill the void that opened when they weren’t working.
Because there’s still an ongoing demand for lumber, that void is difficult to fill.
It means that the supply is struggling to reach the demand.
The price of lumber is high as a result.
Lumber is expensive because labor shortages caused by the COVID-19 pandemic decreased the global supply of lumber.
9. Bottleneck Supply Problems At Ports
A newer problem that’s causing the price of lumber to rise is the problem at various ports in the United States.
There’s a lack of storage containers making it slower for ships to leave the port with the goods they need.
There are also fewer workers operating the cranes to unload the containers from ships.
Since fewer ships can leave the port, it also means that fewer ships can access the port.
This means that there’s a huge delay in shipments.
Even though dockyards have extended their hours and truck drivers are working night and day to alleviate the problem, there are still traffic jams at the ports.
This impacts the price of lumber in several ways.
The first is that it means it takes longer for stores to resupply their lumber.
That impacts the supply they have for customers.
With fewer pieces of lumber to sell, the price for them increases.
The second way shipping delays impact the price of lumber is that it adds cost to the overall process.
Since dock workers and truck drivers have to work longer hours, those wages need to be covered.
That adds to the price of shipping which then adds to the price of the lumber.
The final reason is that the ship workers also need extra pay since they’re working longer.
They’re unable to complete the job until they offload the containers at the port.
As a result, they’re paid more which makes the process more expensive.
That also adds to the price of lumber.
Until they alleviate the traffic jams at the various ports in the United States, the supply of lumber will continue to dwindle.
Lumber is expensive because of the shipping bottlenecks at naval ports that are impacting the global supply of wood.
10. Inflation
The final reason that lumber prices are expensive is inflation.
Inflation occurs when there’s a lot of money in the system, but economic growth hasn’t matched it.
The value of that money goes down since the price of goods rises.
That’s the case with lumber.
Eventually, the rate of inflation will decrease, but it could take years.
Add this to the supply problems already facing lumber, and you can expect the price of lumber to remain high for another year or two.
How To Save Money On Lumber
If you have a renovation project in mind, then you may need to get your hands on lumber.
However, the high cost of lumber may be keeping you from moving forward with the project.
Here are a few ways you can save money on lumber and finally get started on renovating.
1. Find A Reuse Store
Instead of heading to your local lumberyard or hardware store, you should consider finding a reuse store.
One of the most popular types of reuse stores comes from Habitat for Humanity.
Called ReStore, these reuse stores sell various types of construction materials.
This is a nonprofit organization, too, so you can help them do great work by buying from them.
They receive their inventory from builders who end up with a surplus of construction materials.
By donating their materials to ReStore, the builders also receive tax breaks.
You can often find materials like plywood, trim, and even two-by-fours at a reuse store.
The best thing about shopping at this type of store is that the prices are far cheaper than what you’d find at a lumberyard.
2. Shop At A Salvage Store
Another type of store where you can find great prices is a salvage store.
This is different from a reuse store in that they primarily sell furniture pieces.
These stores either buy furniture from people or accept donations from the public, contractors, or even from estate sellers.
Unlike antique stores which refurbish their wares, salvage stores tend to sell the goods as they are.
This also means you can score great deals on them.
If you originally wanted some wood to build furniture, then it’s worth checking out your salvage store first.
You may find a piece of furniture that you love and can skip buying lumber altogether.
3. Reclaimed Wood
It’s also worth looking at your local recycling organizations to see if anyone sells reclaimed wood.
It’s a business in itself and there are some proprietors dotted across the country.
These individuals find wood from abandoned buildings or spare wood from building sites and clean them up.
The wood is usually as good as new, and you can buy it for far lower prices than new wood.
Reclaimed wood also comes with the added bonus of having a lot of character.
4. Shop Online
Whether it’s lumberyards with surplus lumber or a homeowner who has more wood than they need for a project, you can also always try to find lumber online.
Looking through eBay, Facebook Marketplace, and even Craigslist can help you find some lumber at great prices.
It helps to narrow down your search to the specific type of wood that you need.
As with buying anything online, there’s always a risk of finding a scam.
You should try to focus on buying from suppliers, lumberyards, contractors, and builders before buying from homeowners or individuals.
Professionals are less likely to scam you since they need to protect their reputations.
Conclusion
Lumber is expensive due to supply and demand and the various factors that influence both.
Thanks to the COVID-19 pandemic and inflation, suppliers have had a difficult time filling the gap in lumber demand as well as meeting the current demand for wood.
Lumber doesn’t have to be expensive, however.
Try the tips above to find cheap lumber to build your next project.
