[HN Gopher] Update: Lumber Prices Down 11% YoY
       ___________________________________________________________________
        
       Update: Lumber Prices Down 11% YoY
        
       Author : alphabettsy
       Score  : 65 points
       Date   : 2023-10-03 19:55 UTC (3 hours ago)
        
 (HTM) web link (www.calculatedriskblog.com)
 (TXT) w3m dump (www.calculatedriskblog.com)
        
       | matternous wrote:
       | Lumber prices seen all over the place when I search for various
       | species of hardwood. Is there a standard online retailer to
       | reference?
        
         | angry_moose wrote:
         | Not really because its so regionally dependent - prices can
         | vary dramatically within even 100 miles. I just picked up a
         | bunch of of black walnut for $12.80/bdft, but I could get it
         | for around $8 if I drove a couple hours south.
        
       | oblio wrote:
       | Are these changes reflected in any downstream price changes?
        
       | throw0101a wrote:
       | Can't wait for another _Odd Lots_ podcast supply chain episode on
       | lumber. Previously (make it a trilogy):
       | 
       | * https://omny.fm/shows/odd-lots/why-the-price-of-lumber-has-s...
       | 
       | * https://omny.fm/shows/odd-lots/stinson-dean-on-the-lumber-cr...
        
         | bradly wrote:
         | In you want to learn about the lumber industry and how the
         | supply chain works I recommend this podcast:
         | https://www.lumberupdate.com/
        
       | gigel82 wrote:
       | Things like plywood (for furniture) didn't come down in price yet
       | to pre-pandemic levels; hoping they catch up soon.
       | 
       | You used to be able to get 3/4 maple 4x8 for ~$50, now it's $85
       | at Home Depot and over $100 from the local lumberyard.
        
         | dugmartin wrote:
         | There was a weird blip of time during the pandemic where
         | cabinet grade plywood was cheaper than CDX sheathing at my
         | local Home Depot. If I was building a house then it would have
         | been cool to sheath it in oak veneer plywood.
        
       | post_break wrote:
       | This means my homeowners insurance will surely go down right?
       | Right...? Of course not.
        
       | pcurve wrote:
       | From the same blog: vehicle sales are up 15% YoY
       | 
       | https://www.calculatedriskblog.com/2023/10/vehicles-sales-in...
       | 
       | Not necessarily a sign of health, but playing catcup with
       | hisotrical trend.
        
       | chubs wrote:
       | I'm a little concerned that the downturn in that graph coincides
       | with changing from measuring one financial instrument to another.
       | But i dont know enough about those instruments to know if that's
       | an issue or not :)
        
         | pnpnp wrote:
         | The price of lumber also was astronomical during Covid. I think
         | it's somewhat logical to expect a return to a more "normal"
         | price as economics bounce back from a somewhat unprecedented
         | couple years of crazy economics.
        
       | wlesieutre wrote:
       | For the unfamiliar, a "board foot" is a unit of lumber volume
       | representing a square foot of board with 1 inch thickness.
       | 
       | So an 8' long board 12" wide and 1" thick is 8 board feet. Or
       | half as wide and twice as thick (6" x 2") in the same length is
       | also 8 board feet. You get the idea.
        
         | em3rgent0rdr wrote:
         | metric system is so much easier: m3
        
           | jpitz wrote:
           | Metric makes the math easier, but it is much easier for me to
           | relate to 40 board-feet of lumber than to 0.0944 cubic-
           | meters.
        
           | hartator wrote:
           | I don't think you can have a 1m^3 of wood. Life is not
           | Minecraft.
        
             | [deleted]
        
             | Jedd wrote:
             | A foot is a (variable) measure of length.
             | 
             | A board foot is a measure of volume - with an implicit
             | third dimension.
             | 
             | So you could just use the SI unit for volume.
             | 
             | A board foot ~= 2.4 litres.
             | 
             | This seems a bit silly though, as timber is not fungible in
             | the way you'd expect a _volume of something_ to be.
             | 
             | As noted by sibling comments, you very much can buy timber
             | in cubic metres - a convenience for costing / transport -
             | but you're not going to buy timber without knowing
             | dimensions of the individual lengths.
        
             | tinco wrote:
             | If you're purchasing gross lumber here in The Netherlands
             | it is definitely priced per m3. For example here:
             | https://inlands-hout.nl/houtsoorten-en-prijslijst/
             | 
             | Just like with board feet it doesn't say anything about the
             | actual dimensions. Also, I don't think it's much better as
             | a unit than board feet either, both have very unclear
             | relationship to the actual amounts you need. You'll always
             | need to do a pretty complex calculation to figure out how
             | much you'd need to buy. The pricing is mostly useful as a
             | comparison to look at relative or day to day pricing
             | differences.
        
               | singleshot_ wrote:
               | And for what it's worth, the board foot cost of a 2x4 and
               | the board foot cost of a 2x12 are wildly different.
        
             | m463 wrote:
             | I think you would need old growth for true 1m3
        
             | mtmail wrote:
             | Germany uses Euro per Festmeter as measure, a Festmeter is
             | 1m^3. Trees are round of course but Festmeter is on the
             | invoices and pricing tables.
        
             | mrcode007 wrote:
             | Unless you're making infinitely thin two dimensional planes
             | made of wood you always get a cubic volume of wood. Always.
             | No exceptions. What do you think W x L x H stand for?
        
             | candiddevmike wrote:
             | If you buy logs you probably can
        
         | singleshot_ wrote:
         | When you say one inch wide, do you mean one of the twelve
         | things in a foot, or one of the two things in the width of a
         | 2x4?
        
           | yojo wrote:
           | I believe you're referring to "nominal" vs "actual" size. For
           | anyone who doesn't know, a 2x4 is actually ~1.5"x3.5"
           | 
           | Dimensional lumber is the original shrinkflator
        
         | angry_moose wrote:
         | To elaborate a little more:
         | 
         | Board thicknesses are measured in the "quarter system" - 4/4
         | (pronounced "4 quarter", that is 4 quarters of an inch) is a 1"
         | thick rough-rough sawn board; 8/4 (8 quarter) is a 2" thick
         | rough board. As this is rough sawn (super rough and unsightly
         | finish), you usually lose at least 1/8" while finishing the
         | board, so a 4/4 rough board gives you something around 3/4"
         | finished product.
         | 
         | This leads to 5/4 being another fairly common dimension, as you
         | can get a 1" finished board out of it. 6/4 and 12/4 are
         | somewhat common as well.
         | 
         | It might seem like an "ugly dimension" compared to something
         | like m^3, but its really built around speed. Watching someone
         | skilled price out an enormous stack of mismatched lumber
         | (width, thickness, and length) in seconds with a lumber rule is
         | always a fascinating process to watch
         | (https://www.popularwoodworking.com/techniques/the-lumber-
         | rul...).
         | 
         | Usually the $/board foot increases slightly at higher
         | dimensions as thicker lumber is harder to produce. I got some
         | 4/4 black walnut for $12.80/bdft last week; 8/4 was closer to
         | $16.
         | 
         | Edit: This is also why 2x4s are actually 1.5"x3.5" -
         | historically they were 2x4 rough sawn lumber, but .5" is lost
         | in both dimension when producing finished boards you purchase
         | in the store.
        
       | somethoughts wrote:
       | Always thought it'd be cool if there was some economic simulation
       | game (simcity, city skylines, etc.) that was tied to real life
       | commodity markets.
        
         | m463 wrote:
         | Would that make the game less fun?
         | 
         | or would the economy be the fun part of the game, automating
         | and driving down prices?
         | 
         | I think games like factorio, the fun comes from automating and
         | being less of a mental burden.
        
       | tpmx wrote:
       | The chart in the article does a nice job at illustrating that
       | prices are roughly speaking back to essentially pre-pandemic
       | levels after giant spikes. This seems healthy to me.
        
         | reducesuffering wrote:
         | I love the tradingeconomics site for tracking commodities
         | prices. Indeed, lumber is at pre-pandemic prices from 5 years
         | ago
         | 
         | https://tradingeconomics.com/commodity/lumber
        
           | greggsy wrote:
           | Cripes what is going on with orange juice.. there's some
           | seasonal patterns in the last 25 years, but the last year has
           | just kept climbing.
        
             | ramesh31 wrote:
             | Climate change comes at you quick. We're well past the
             | point of hypotheticals, and headed down the road to
             | catastrophe.
        
             | mcculley wrote:
             | Here in Florida, citrus greening has devastated the groves.
        
               | eth0up wrote:
               | That... and grubby land grabs, cavalier/deranged
               | development (Lennar), and ignorant newcomers who think
               | making a subtropical keystone ecosystem conform to their
               | hell of previous residence is justified by exorbitant
               | checks and brutal disregard.
        
             | reducesuffering wrote:
             | Not sure. That was the lone outlier I saw too. Quick
             | internet glance seems to implicate crop disease and Florida
             | hurricanes dropping supplies.
        
       | alexfoo wrote:
       | tinlc
        
         | somethoughts wrote:
         | there is no lumber cartel?
        
       | listenallyall wrote:
       | Supposedly, wholesale chicken wings are lower than pre-pandemic
       | prices.
       | 
       | https://www.nbcnews.com/business/consumer/chicken-wing-price...
       | 
       | I've yet to find a restaurant, however, where menu prices for
       | wings aren't at least 20% higher than 2019 or so -- often much
       | higher. Similarly, I have a hard time believing that lower lumber
       | prices will reduce new construction costs.
        
         | curiousllama wrote:
         | Retail prices are generally pretty sticky - if the wholesale
         | price persists, they'll come down, but it'll take time.
        
           | quadrifoliate wrote:
           | I hope they come down -- I have reduced my restaurant spend
           | considerably since restaurant (even chain) prices went up by
           | 30-50% in my area compared to pre-Covid.
           | 
           | Maybe I'm too price-conscious, but I'd expect demand to go
           | down over time as the rising interest rates affect daily
           | life.
        
             | curiousllama wrote:
             | Yea for sure. This is the recession & deflation folks have
             | been asking for.
        
         | [deleted]
        
         | dessimus wrote:
         | Not a lot of people are willing to work in the food service
         | industry in general, nor at 2019 wages specifically, also
         | rents, and real estate skyrocketed. Food costs are generally
         | only about 1/3 of menu revenue, with wages and overhead being
         | the other ~2/3. Profits are generally very thin in restaurants.
        
         | makestuff wrote:
         | Yeah I agree, it will make prices stay flat for a few years,
         | but I highly doubt there will be a massive decrease in
         | construction cost unless we see another 2008 style economic
         | crisis. Although, labor shortages in the construction industry
         | might make still allow prices to stay high.
        
           | superwalker wrote:
           | Labor prices for skilled labor have increased so much that
           | even when you do the "how much is my time worth" calculation
           | _as an overpaid engineer_ , DIY has become the only way to
           | go. It's nuts, but a fun learning experience.
        
       ___________________________________________________________________
       (page generated 2023-10-03 23:00 UTC)