UP, UP AND AWAY

from Yellowstone Valley Woman Magazine

CARING FOR THE COMMUNITY

UP, UP,UP UPAND ANDAWAY AWAY

SKYROCKETING LUMBER COSTS IMPACT HOUSING MARKET

written by TRISH ERBE SCOZZARI photography by DANIEL SULLIVAN

TODAY’S LUMBER PRICES are all over the board. “We don’t know week to week what prices will be,” says Tim Johnson, manager of Thomae Lumber of Billings. “Every week we see an increase,” adds Wayne Schaefer, outside sales rep for the company.

With record-setting increases in wood products, it’s challenging for builders and Do-It-Yourselfers to complete projects, let alone start new ones.

“And that’s if you can even find lumber,” says Tim. “What you buy today may not be available on the open market. And with trucking, it might be a month to a month and a-half away.”

One of the hardest pieces of lumber to get a hold of is Oriented Strand Board (OSB), probably the most recognized and certainly the most common building material used. OSB hit an all-time high this spring, when the price of a 4-by-8 sheet soared from $10 to $65.

“The numbers are staggering,” Tim says. “Nationwide, OSB is up 600 percent compared to last year at this time and lumber is up 200 percent per thousand board feet.”

“Never in history have we seen increases like this when comparing bids to six months ago or to last year. It’s due to availability. Normally, this time of year we have three times more (inventory) than we have. We have to be careful where our stock goes as our loyal customers come first,” says Tim. He’s thankful Thomae Lumber is a part of the Mead Lumber family. With 42 locations, the company has “good buying power.”

Home Builder Jarrett Smith counts on this partnership. Like many builders, he and his company, Branding Iron Construction, continue to build homes in the valley. He’s also coming face-to-face with how the dramatic increase in lumber costs changes the dynamics for new-build homes.

“It’s really hard,” he says, “as I have to explain to the owner whose house is currently under construction it’ll be an additional $8,000. This limits the extras going into the home. They may not get a fence as the

The costs keep spiking while the housing market keeps booming, so what is causing this major shift in soaring lumber prices and availability?

“It’s supply and demand,” Tim says. “Covid caused production levels to go down due to staffing at the mills and, there’s demand.”

“We had a decade that was kind of stagnant so now we have pent-up demand,” Jarrett adds. “We have urban migration. Young professionals and young families are moving here. They don’t want to be in urban areas.”

This influx of people places a demand on residential building while adding to the local economy. “Our area should be good,” says Jarrett, “as long as people keep coming in from the outside.”

Tim is also optimistic. “Production needs to get back to normal as it’s the procurement of materials,” says Tim. “Once production re-establishes, we should be fine. Business looks good the remainder of the year.” ✻ THE NUMBERS ARE STAGGERING. NATIONWIDE, OSB IS UP 600 PERCENT COMPARED TO LAST YEAR AT THIS TIME AND LUMBER IS UP 200 PERCENT PER THOUSAND BOARD FEET. — Tim Johnson