Soaring Lumber Prices Driving Up Construction Costs May Have Peaked

A worker uses a forklift to move lumber at Haney Builders’ Supplies in Maple Ridge, B.C., on June 12, 2020. The Canadian Press/Darryl Dyck

OTTAWA—While lumber prices nearly doubled earlier this year compared to what they were at the start of the pandemic, driving up the cost of new homes and renovations, the peak may have passed.

After reaching around $1,600 per thousand board feet, the standard industry measurement, lumber prices have dropped by about $400, says Joel Neuheimer, vice president of international trade with the Forest Products Association of Canada.