MEDIA RELEASE PR39270
Crow's Construction Materials Cost Index (CMCI) Reports Potential for $1.7 Billion Increase in
Home Construction Costs
BOSTON, Apr. 26 /PRNewswire-AsiaNet/ --
Crow's Weekly Market Report (Crow's) today reported that the total cost of lumber and panels for
construction of a 2,116 sq ft home is nearly double that of year-ago levels. Based on the Crow's
Construction Materials Cost Index (CMCI), the wholesale cost of lumber and panels for framing an
average home has risen from $3,829.98 in April 2009 to $7,088.60 today. In addition, Crow's noted that
when these figures are applied to the March 2010 single family housing starts number of 531,000, the
potential exists for an additional cost to the home building industry of $1.7 billion. This rise can be
attributed to the continuation of a uniquely supply-driven lumber and panel market. Crow's reported that
while sustained and unexpected price increases for lumber and panels have been seen in the recent
past -- specifically in the 2004-2005 timeframe, those increases were almost solely driven by demand
from new housing starts. Crow's notes, that in today's markets, retailers, wholesalers and producers
alike have learned to get by with as little inventory as possible, in an effort to keep ahead of an expected
drop in demand and prices as North America continues to fight its way through the mortgage crisis and
debilitating economic times.
Ken Tennefoss, Executive Editor of Crow's Weekly Market Report,
commented, "While we recognize that it is highly unlikely for lumber and
panel prices to remain at these levels for the remainder of the year, it is
worth noting that in 2004, there weren't too many people in the industry that
believed the price of 7/16 OSB would reach $520, and yet, of course it did."
He continued, "It's important, now more than ever, to be aware of price
changes. From the manufacture to the guy nailing up 2x4s, the impact of
change can be tremendous."
About Crow's Weekly Market Report
Crow's Weekly Market Report, part of the Crow's Market & Price Service,
is the longest-running source of prices in the North American softwood lumber
and panel industry. Crow's provides objective wholesale pricing and detailed
market reports designed to give a quick but accurate understanding of each
week's market.
Crow's Weekly Market Report is published weekly. Yearly subscriptions are
available now for $595. To order or for more information, please visit
About RISI
RISI is the leading information provider for the global forest products
industry. The company works with clients in the wood products, timber, wood
biomass, pulp and paper, tissue and nonwovens industries to help them make
better decisions.
Headquartered in Boston (Bedford), Massachusetts, RISI operates offices
in Brussels, Belgium; Atlanta, Georgia; San Francisco, California; Portland,
Oregon; Sao Paulo, Brazil; Shanghai, China; Singapore; and Charlottesville,
Contact:
Dan Blenk
Director of Marketing
Wood & Timber Information
RISI
4 Alfred Circle, Bedford MA 01730 U.S.A.
Tel: +1.781.734.8942
Email: dblenk@risi.com
SOURCE: RISI
CONTACT: Dan Blenk,
Director of Marketing,
Wood & Timber Information,
RISI,
+1-781-734-8942,
dblenk@risi.com
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