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The Effect of Lumber Prices on the Cost of Housing More

Lumber prices have increased dramatically this decade, making new homes less affordable. Prices averaged $200 per 1,000 board feet during the 1980's; for the 1990's prices have averaged over $300. The increases have been caused primarily by environmental restrictions on timber harvesting in the forests of the Pacific Northwest.

The cost of lumber and wood products accounts for one-third of the costs of materials used to build a home. A typical 2,000 square-foot-home uses nearly 16,000 board feet of lumber and 6,000 square feet of structural panels, such as plywood. At $400 per 1,000 board feet, the lumber package for a 2,000-square-foot-home costs nearly $10,000.

Cost per 1,000 ft*

Framing Lumber

Structural Panel

Lumber Costs per House

$200

$3,488

$1,394

$4,882

250

4,360

1,743

6,103

300

5,232

2,091

7,323

350

6,104

2,440

8,554

400

6,976

2,778

9,764

450

7,848

3,137

10,985

500

8,720

3,486

12,206

550

9,592

3,834

13,426

600

10,464

4,183

14,467

650

11,336

4,531

15,867

700

12,208

4,880

17,088

750

13,080

5,228

18,308

800

13,952

5,667

19,529

*Cost per 1,000 board feet of framing lumber or 1,000 board feet of structural panels such as plywood.