How Dropping Lumber Prices Will Impact Senior Housing Development
Lumber prices skyrocketed at the height of the pandemic, resulting in supply chain issues and construction challenges for all industries, including senior living. In fact, “lumber prices have been more volatile than at almost any other time in history,” according to a recent Fortune piece. The unpredictable lumber prices have not only caused a headache for consumers and builders, but developers as well. In January of 2022, the cost of lumber reached a shocking high of $1,733 per thousand board feet. The high price of lumber caused turmoil throughout the industry and largely put a halt to new senior housing construction, but there’s good news on the horizon.
Sherman & Roylance’s George Bingham tells us the price of lumber is plummeting, dropping by more than 65% to $651 per thousand board foot. This is an incredible turn of events and a good indicator that the supply chain phenom may be cracking, according to Bingham. As lumber prices continue to drop, the door will open for senior housing developers who have been waiting in the wings. This also means home prices are expected to fall, which could have an impact on the next generation of seniors.
With urban development up and active adult complexes taking over commercial complexes like shopping centers, the future of the industry is heading in a new, exciting direction. Curious about Sherman & Roylance’s senior housing development capabilities, or are you interested in receiving a valuation on your property? Contact our experienced team today and remember to check out our exclusive inventory opportunities.
Sherman & Roylance’s George Bingham tells us the price of lumber is plummeting, dropping by more than 65% to $651 per thousand board foot. This is an incredible turn of events and a good indicator that the supply chain phenom may be cracking, according to Bingham. As lumber prices continue to drop, the door will open for senior housing developers who have been waiting in the wings. This also means home prices are expected to fall, which could have an impact on the next generation of seniors.
What Does This Mean for Senior Housing Construction?
Senior housing developers have been tasked with adapting to the evolving market and disruptions. As we discussed last month, this has given legs to less traditional life plan models and developments, in addition to green building practices. Active adult communities and residential care facilities have gained traction, and it will be interesting to see how the dropping lumber prices impact the industry. While experts say the “worst is behind us,” it’s too early to know what the demand for lumber will look like over the second half of the year.With urban development up and active adult complexes taking over commercial complexes like shopping centers, the future of the industry is heading in a new, exciting direction. Curious about Sherman & Roylance’s senior housing development capabilities, or are you interested in receiving a valuation on your property? Contact our experienced team today and remember to check out our exclusive inventory opportunities.