Lumber and plywood prices are so high now because of the short-run dynamics of demand and supply. Wood demand shot up in the summer of pandemic. Many homeowners were stuck at home, unable to vacation.

Why are lumber prices so high in 2021?

Home prices are soaring, pushed higher by a combination of record-low mortgage rates, strong demand from buyers and a lingering lack of new construction. In 2021, a new factor put pressure on home prices: Month after month, lumber prices jumped to new highs. Lumber costs soared more than 30% from January through May.

Why is lumber so expensive right now?

Lumber's record high prices date back to the onset of the pandemic and come from the combination of a supply chain under a huge amount of stress and a massive jump in demand. In March and April 2020, sawmills shut down due to pandemic-related safety restrictions, and lumber has taken off ever since they reopened.