Damage left by Hurricane Irma
In light of the recent disasters caused by Hurricanes Harvey and Irma, we’ve had several people wondering how this will affect lumber pricing going forward. Obviously there is a significant amount of lumber used in new home construction and prospective builders fear a surge in lumber prices will price them out of building their dream home. Unfortunately, according to most economic forecasters it is still too early to tell what affect, if any, the hurricanes will have on the lumber market.
Typically, lumber prices do rise following natural disasters, however the increase is primarily concentrated in the storm ravaged areas. However, “there are other factors in play right now,” states NAHB (National Association of Home Builders) economist, Dave Logan. “The wildfire outlook is uncertain at this point, and duty rates on Canadian lumber are being reevaluated and will not be finalized until mid-November.” The lumber duties have been on NAHB’s radar well before Harvey and Irma and the group is calling for legislative action to postpone duties on Canadian lumber.
Although, the outlook on lumber prices is still uncertain, economists believe there will not be much impact on prices through the medium term. However, economists are forecasting an increase as much as 10% on roofing materials as a result of Hurricane Harvey. These increases will be felt nationwide and could be long-lasting. For more information, check out the full article here
Regardless of what building material prices do, our thoughts and prayers go out to all affected by the hurricanes this season.