I could not believe my ears.
I recently called a local lumberyard to ask how long they held the price of a lumber quote for a house frame package.
“One day.” she responded after checking with the yard manager.”
“One day!?”
“One day,” she confirmed.
Dazed and confused, I called the local outlet of a major nationwide chain. Same response.
Lumber prices have risen over 150%, since January 2020 (that’s over 10% a month!), according to the National Association of Homebuilders, and are continuing to increase.
The reasons for this trend in prices have been building for some time:
During the last recession, reduced demand forced the closure of several major mills
More recently the demand for wood frame homes has risen worldwide, including major markets that lack adequate lumber resources of their own
During the pandemic the demand for lumber has risen
Urban expatriates freed from daily commuting are building anew
The rebuilding of thousands of homes tragically lost to fire in the West, has created a spike in demand
The construction of temporary outdoor dining sheds during the pandemic has been widespread throughout the country
Low interest rates have enabled all of the above to a greater extent.
Lumber prices are not the only component of homebuilding that has risen. The increased demand, coupled with pandemic-mandated shutdowns, have strained every aspect of planning, production, on-site construction and inspection by increasing wait-times sometimes dramatically. For example, the wait time for building permits in Seattle and the East Side and the surrounding towns has risen from a typical 10 weeks to 26 weeks!
No one is unaffected. At Lindal, drafting, pricing, and engineering times have crept up by weeks despite increased staffing.
Lindal’s modern response to price volatility
The last year has been stressful for everyone. Lindal's goal of making the process of planning a home as stressless as possible has never been timelier.
I often describe modern as “of the times. Modernism is a response to real world conditions, and Lindal's response to price volatility is indeed modern:
a. Unlike the 24-hour price lock at major lumber outlets, Lindal will hold the price quoted on preliminary plans for thirty days.
b. Once you sign a purchase agreement to buy the Lindal materials, Lindal will hold the price of your material for delivery from nine months to one year!! If prices go down in that time, your price will be reduced.
This should give you ample time to obtain your building permit if you apply as soon as your plans are completed without prices going up (obviously changes that you make to the design or specifications after the contract may change the prices).
We understand that Price predictability rates very highly on the scale of client motivations for choosing Lindal above other alternatives We quote the Lindal price with our first iteration of CAD plans early in the planning process and control it through the planning process.
What makes this possible? Lindal's historically accurate forecasting and aggressive purchasing practices have always kept prices in check. Since the start of the pandemic, prices on house kits have risen less than 8%.
One practice employed elsewhere in the industry is to lower specification quality to control prices. Lindal does not engage in that practice.
MODIFIED CASCADE
How can you fight the process-wide expansion of time?
Obviously, we cannot condense permitting time and other aspects of the construction process that are beyond our control. But how can we minimize your planning time?
One method of reducing planning time is to work with us to select a plan from the over 200 designs featured in the many Lindal plan books (all available to view on Lindal.com) and to personalize that design so that is well suited to your site, your lifestyle, and your budget. Our architectural training and years of experience (and the fact that Warmmodern Living created many of the Elements plans) will enable us to tailor a planbook plan successfully to your needs, and you’ll save months on the planning process.
Lindal’s highly successful Quick Ship Program offers the best method for reducing planning time. Lindal has made available reduced drafting times and special pricing (up to 15% off the full price) for 19 of our most popular designs for clients whose modifications are on the interior only. By not changing the outer shell, drafting and engineering time are significantly reduced, and the savings are passed along to you. The Quick Ship Plans are available to view on Lindal.com (search “Quick Ship”).
QUICK SHIP ASH
When you are ready to begin planning your new home, Warmmodern Living is here to manage a process and create a design that is perfectly suited to your lifestyle, your site and your budget. The Lindal building system enables us to provide the ultimate in predictability and flexibility.
Planning can be relatively stress-free, even in stressful times!
Michael Harris
Tanya Nachia