Canadian retail prices for framing lumber rose 34% in 2018 compared to 2016 driven by a confluence of factors in the commodity markets.
This increase contributed to the higher construction costs for new residential buildings observed in 2018 across many regions. Canadian wholesalers and retailers of lumber largely passed on cost pressures originating from commodity markets to consumers.
Retail prices for lumber reached multiyear highs in 2018
The average selling price for framing lumber (2-inch x 4-inch x 8-ft dimension) was up 34% in 2018 compared to 2016. This was due to rising purchase prices which increased 32% during the same time. Retailers largely passed on cost pressures from wholesalers and producers to consumers. From 2013 to 2015, relatively stable selling prices were recorded averaging $3.1 per unit.