Lumber shortage drives up homebuilding costs

Pandemic-related supply crunches are forcing contractors to pay premiums for lumber, driving up construction costs, CBC News reports. Prices for basic lumber products like two-by-fours have doubled since 2018, adding “tens of thousands of dollars depending on the size of your home,” according to Kevin Lee, CEO of the Canadian Home Builders Association.

Although it’s impossible to say just how long the shortages will last, U.S. Federal Reserve Chair says they can’t go on forever. “It’s very possible … that you will see bottlenecks emerge and then clear over time,” he said. “These are not permanent. It’s not like the supply side will be unable to adapt to these things. It will — the market will clear. It just may take some time.”