After a three-month lull that began in September, lumber prices have started rising again. This month lumber prices increased 20% to $650 per thousand board, according to data from Random Lengths and reported by the National Association of Home Builders.

Lumber prices had steadily increased since the start of the pandemic through September. From April through August, lumber prices increased 110%, according to the NAHB. In September, lumber prices reached $950 per thousand board, an increase of 28.6%. The pricing was an all-time high. However, the following month, prices fell to $550 per thousand board. Lumber pricing has had a significant impact on construction costs this year, adding thousands of dollars to a developer's bottom line.

National Association of Home Builders estimates that the increase in lumber costs increased new single-family home prices and apartment prices by approximately $14,000 and $5,000, respectively. Several factors have contributed to the rising costs, including the fires on the West Coast, increased home renovation activity and new single-family construction. Remote work policies also reshuffled population centers and fueled new construction in suburban markets and even rural areas.