Lumber is shockingly expensive. Thanks, Obama.

Skyrocketing prices are the new result of old policy choices

A rich man with lumber.
(Image credit: Illustrated | iStock)

Lumber prices are so high that this ordinarily sleepy industry has captured headlines around the world. The generic lumber spot price reached $1,420.50 at time of writing — more than triple the figure of December 2019. The National Association of Home Builders estimates that this has added $24,000 to the average cost of new home construction relative to this time last year.

It's an unfortunate situation for builders, buyers of newly constructed homes, or anyone else who uses lumber. But it's also an unavoidable long-term consequence of some horrific policy mistakes that were made after the Great Recession. The only way to deal with this problem sensibly is to keep running the economy hot so that new supply can come online to catch up with demand.

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Ryan Cooper

Ryan Cooper is a national correspondent at TheWeek.com. His work has appeared in the Washington Monthly, The New Republic, and the Washington Post.