The price of lumber is up nearly triple since 1 year ago.
Well, yes we do have a pandemic. The pandemic triggered an economic panic, and the Fed lowered interest rates in response to try and stimulate the economy. That made borrowing money cheaper. Specifically, it caused mortgages rates to be at historical lows.
That caused many people to buy homes, which caused a surge in demand for homes. Pandemic also caused people to stay at home, which means they want bigger and more comfortable homes. They might also want to do some home-improvement as well.
Construction companies that build homes are having amazing business since there are too many contracts to fulfill. Lumber mills have slowed down and are no longer operating at full capacity due to pandemic restrictions.
What we get is high demand for homes and low supply of lumber. That makes lumber more expensive.
Here’s a dependency graph: