A
Th e
Component Manufacturing dverti$ dverti $ er
Don’t Forget!
May 2021 #13262 Page #102
Adverti$$er
You Saw it in the
Lumber Briefs By Matt Layman Publisher, Layman’s Lumber Guide
Build-to-Rent and Here Comes the Wood Build-To-Rent: Overlooked Obvious
N
ot to be sacrilegious, but things in the lumber market are feeling apocalyptic. My primary concerns about the lumber and OSB market right now are two-fold. One, blatant disregard and unnatural comfort with prices.
One of our members asked if he should cover September OSB @$1600 delivered. He has a 4-month supply. My answer was a definitive NO! In fact, I recommended he sell one month’s inventory at $1900 for quick shipment. No one needs to buy inventory to cover 5 month needs at today’s price and shipment. I’ll wager a year’s membership fee that he can buy that same shipment offered today at $1600, for less than $1200 by the first week of August: one month sooner than offered and $400 less. Concern #2: Build-to-Rent. John Burns, renowned real estate consultant, estimates build-to-rent investor and capital transactions as follows. I extrapolated that into number of new homes. JB
US Census Median Sales $
LLG # Homes
Mar 2020
$120mm
$328.2k
365
Apr 2020
$0
$310.1k
0
May 2020
$825mm
$317.1k
2603
Jun 2020
$0
$341.1k
0
Jul 2020
$300mm
$329.8k
880
Aug 2020
$300mm
$325.5k
910
Sep 2020
$400mm
$344.4k
1229
Oct 2020
$834mm
$344.4k
2421
Nov 2020
$0
$350.8k
0
Dec 2020
$125mm
$365.3k
500
Jan 2021
$3,200mm
$362.2k
8760
Feb 2021
$30.6mm
$345.9k
84
Mar 2021
$2,850mm
$330.8k
8239
Apr 2021
$600mm
$340.8k est.
1760 Continued next page
PHONE: 800-289-5627
Read/Subscribe online at www.componentadvertiser.com
FAX: 800-524-4982