NewsLocal News

Actions

Surging lumber cost and home demand playing out in Central Texas

Home building supplies decreasing, home prices increasing, demand still high
Circle Hardware & Lumber
Posted at 10:18 AM, Apr 25, 2021
and last updated 2021-04-25 11:18:23-04

WACO, TX — The U.S. is seeing an unprecedented surge in lumber demand, and prices, and it's having an impact in Central Texas.

JP Peezio is of Circle Hardware Supply in Waco, TX, and at the moment his line of work is crazy.

"Ive been doing this my whole life and it just nuts its just crazy right now."

The reason? A unprecedented surge in the price of lumber.

"There's been shortages before i've seen a lack of lumber supplies but ive never seen a price increase so drastic," he said.

The cost per 1,000 board feet of lumber is up more than 200 percent from this month last year.

"Something that you would be buying for $9 to $12 is now costing you $43 to $45," Pizzio said. "It's kind of unfathomable."

The cause, stems from the pandemic sure, but more specific an insatiable apitite for remodeling & an overflowing housing market.

"it's unprecedented for sure," said Jim Patterson.

Jim Patterson is the president of the Heart of Texas home Builder's Association. he says demand is so high homes are being sold to buyers showing up at

"My presidential parade house, the folks that bought it had no plan of selling the house they were living in," Patterson explained. "Somebody drove up, knocked on the door made them an offer and they sold their house with no intention of ever selling their house or putting it on the market."

The demand is through the roof according to Patterson.

"We normally have 6 or 8 hundred houses on the market on any given time this time it's less than 200."

The price is also increasing in Texas data from HomesUsa shows the price of an average home in the states 4 major housing markets increasing more than $1,000 in just one month.

"There's less lumber but it's not just lumber its wire its concrete," Patterson said.

"i'm hoping and praying it will level off but i know sheet goods, ply woods, o-s-b there's are going to increase," Pizzio said.

For now both Pizzio and Patterson said demand for homes are high and interest rates are low, meaning at least for now prices for building materials will stay high.