The Economic Perspective: “Construction Prices”

Mary:    I’m Mary Walden with economist MW welcoming you to the economic perspective.  Today’s program looks at construction costs.   Mike, since we’re now officially in a recession, I would expect many prices would fall.  But I’ve seen one price – the price of lumber -go in the opposite direction – up.  What’s been different with lumber?

 

Mike: Summary Answer

  • Indeed, lumber prices are now higher than pre-recession
  • Two things happened that weren’t expected
  • Building activity continued during the virus
  • Second, with people being home-bound and not taking vacations, many have used this time to make home improvements, like decks and fences
  • Some now look at their homes as offices and places where they will home-school – so have put on additions
  • Lumber prices will ultimately drop, but for right now, lumber is more valuable
  • I’m MW

 

Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.