|
The clouds of the pandemic are parting. Lots and lots of people, restaurants, and company operations are out of lockdowns, and its back to business as usual, right?
Well, not exactly. The closer we get back to normal, the more we can see the extent of COVID-19’s fallout and the impact it’s had on our once small community.
Most of us were ready to hunker down and wait out the predicted oncoming recession. Mills and manufacturers prepared for a downturn and reduced production and overhead. Few would have guessed in March, 2020 – as the blue skies of business and prosperity clouded over - that by spring of 2021, contractors would be up to their eyeballs in jobs, lumber prices would have tripled, and housing values would almost double.
Perhaps we should have seen this on the horizon: As workers untethered from their city offices moved to work remotely among the mountains, the inventory for housing became tight. The building industry surged in response and so did the demand for materials (although demand is only one factor in a rise in prices).
The boom in demand was unforeseen and thus, next to impossible to fulfill on depleted means. Lead times became extensive and unpredictable and some material is now unavailable altogether.
Even as the supply of Douglas Fir caught up, however, the market continued to climb. Some contractors are forced to walk away from binding contracts that did not have a market stipulation clause and some homeowners are forced to double (at least) their building budgets.
Mercifully, we started to see some price relief over the last two weeks, but with the industry booming the way it is we should not expect a significant downward trend.
Allow me to put this boom into perspective and consider just how much the Tahoe region is expanding by using permit applications as a unit of measure:
- In the first six months of 2020 there were approximately 59 applied-for / issued permits, in all regions of Tahoe, 34 of which were in Town of Truckee and 25 shared among Martis Camp, Schaffer’s Mill and Lahontan.
- There were only 120 permits for ALL of Tahoe area in ALL of 2020.
- In the first six months of 2021, there are 191 permit applications - 131 for Truckee and 60 in Martis and the surrounding area.
These numbers are staggering!
We have not seen it taper off yet, as the permits keep piling in every week. So hang onto your toolbelt, it’s going to be one crazy summer.
Truckee Tahoe Lumber will continue to eye the market for you, practice smart buying, and keep you all building...rest assured, you’re in good hands.
-Kristine Keck, General Manager, Truckee Soaring Way Yard
|
