---
title: Do Higher Lumber Prices Make Building With SIPs More Attractive?
description: Lumber prices are on the rise, and availability is tightening.  Because SIP construction uses less lumber, it makes sense to make the switch.
---

[Blog - Enercept Structural Insulated Panels ](https://3823653.hs-sites.com/blog)

# [Do Higher Lumber Prices Make Building With SIPs More Attractive?](https://3823653.hs-sites.com/blog/do-higher-lumber-prices-make-building-with-sips-more-attractive)

 Written by [Roberta Bartel](https://3823653.hs-sites.com/blog/author/enerceptadmin) | August 25, 2020

**What else could go awry in this crazy 2020 year? Lumber prices!**

****

According to Random Lengths, as of August 21st the price of framing lumber topped $800 per thousand board feet - a 130% increase since mid-April.

**The Why:**

> **According to a July 15th article on marketwatch.com:** 
> 
> "Initially, when the corona virus pandemic began, lumber prices slumped. Construction activity had ground to a halt, leaving mills with an excess supply of wood. But in recent months, building activity has resumed with a bang.

> And mills weren’t prepared. With inventories low and demand so high, lumber prices increased some 60% over the past six months, compensating for the loss at the start of the year.
> 
> Adding to the constraints caused by the pandemic, the impact of tariffs on wood from Canadian mills continues to cause elevated prices for American construction firms.
> 
> That sudden rise in prices could have major implications for the home-building industry." 

The Impact: 

> **According to an August 22nd article on [NAHBNow](https://tinyurl.com/yy85kf8n):**
> 
>  
> 
> "The recent spike in softwood lumber prices has caused the price of an average new single-family home to increase by $16,148 since April 17, according to NAHB standard estimates of lumber used to build the average home. Similarly, the market value of the average new multifamily home has increased by $6,107 over the same period due to the surge in lumber prices."

Interestingly, Enercept Company President, Charlie Ewalt, noted: "I had a conversation with a local contractor this morning [Monday 8/24], and he said the lumber estimate on a house they planned to do, went up $17,000."

**However, housing starts remain strong.**

Single-family and multifamily starts in July posted solid gains in July, with total housing production up 22.6%, according to a report from U.S. Housing and Urban Development and Commerce Department.  The highest production rate since February.

This increase is being driven in large part by historically low interest rates.

**This is good news for the SIP Industry.**

Lumber prices are on the rise, and availability is tightening. Because SIP construction uses less framing lumber, it makes sense to make the switch.

Structural Insulated Panels have not had a significant price increase.  SIPs are now more competitive than ever in the building industry.

 

 

 

[View full post](https://3823653.hs-sites.com/blog/do-higher-lumber-prices-make-building-with-sips-more-attractive)

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