Update on Lumber Prices and Wood Privacy Fences

As we are now into the second half of 2021 (time flies!), we wanted to follow-up with our customers and prospective customers about the cost of lumber and Bravo Fence Company.

What Happened

At the onset of the COVID-19 pandemic, in March of 2020, the price of lumber dipped to $260.

The something strange happened.

Starting just before the summer of that same year, we saw a combination of unusual factors come into play: saw mills closed and supply chains were disrupted, while a major push for home improvements, home renovation, and home building happened, all due to the COVID-19 global pandemic.

Over the course of the next year and a couple months, from March 2020 to May 2021, the price of lumber shot up from $260 to $1,600.

Why Did It Happen

While unprecedented, these events represented the classic economic law of Supply and Demand.

Simply put, because of COVID-19, people were not working.  Sawmills were not operating.  Truckers were not trucking.  Distributors were not distributing.  Wholesalers were not wholesaling, and retailers were not retailing.

Supply of lumber plummeted.

At the same time, because of COVID-19, people were stuck at home. Summer travel and family vacations were not possible, which freed up a lot of disposable income to invest back into our homes – home improvements, home renovations, and new home building…all requiring lumber.

Demand for lumber skyrocketed.

What’s Happening Now

Supply is increasing.

Sawmills are reopening.  People are back to work.  Vaccination rates are rising.

Demand is decreasing.

The pace of home building and home renovations is slowing due to two primary factors.

First, activity is slowing as a reaction to record high lumber costs.  Lumber prices have added an average of $30,000 to $40,000 to the cost of building a house.

Second, people are now focused on summer travel and family vacations again, leaving no room in the budget for home improvements.

The result?

Since May 2021, lumber prices have dropped 60% and are forecasted to continue their downward trend and to “normalize” moving forward.

Is It A Good Time For A New Fence?

As a fence installation company, we were directly affected by the lumber market shocks.

At one point, we ran out of raw materials to build our wood privacy fences.  However, that was a temporary situation, and just like the lumber market seems to be normalizing, so are our fence building operations.

In addition, because of record demand in 2020 and the first half of 2021, we have added additional sales teams and installation crews.  Bravo Fence Company is operating “full steam ahead.”

With an improving lumber market and strong company fundamentals, and with a lot of consumers focused on summer travel rather than home improvements, now is a good time to get your Bravo Fence Company estimate and have us install your new fence.

Finally, in addition to current market realities, with COVID-19 variants on the rise, no one knows what the future holds.  Another wave of lockdowns and stay-at-home orders might happen.

All these factors point to

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The Bravo Fence Team




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