Lumber

[beerntrading]

I wanna see someone build a 300K house with $6K (2%) spent on lumber.

2000 sf home in Denver. 2x4 to ceiling height. 12" between studs (assuming 18" actually, plus additional for top / bottom frame, door / window frames, and corners).

25 x 40' footprint = 130 linear feet of wall.
double that for two stories, double again for equal number of interior walls, add once more for roof and again for second story floor.

130 x 6 = 780 2x4s.

or $7.70 per 2x4 for $6k.

Only if it's oak.

 

[Sig]

2000 sf home in Denver. 2x4 to ceiling height. 12" between studs (assuming 18" actually, plus additional for top / bottom frame, door / window frames, and corners).

25 x 40' footprint = 130 linear feet of wall.
double that for two stories, double again for equal number of interior walls, add once more for roof and again for second story floor.

130 x 6 = 780 2x4s.

or $7.70 per 2x4 for $6k.

Only if it's oak.

There's more lumber in a house than the 2x4s! Not to mention I'm pretty sure code in Denver is 2x6 for exterior walls and you don't make joists out of 2x4s, and you need cladding...

 

[beerntrading]

There's more lumber in a house than the 2x4s! Not to mention I'm pretty sure code in Denver is 2x6 for exterior walls and you don't make joists out of 2x4s, and you need cladding...

There really isn't much more to a stix-n-brix home than a wood frame and cosmetic interior / exterior. Particle board isn't expensive anyway.

I actually just finished paying out on a claim on a 1600 sf home in Denver that burned to the ground. Lumber--as best I can figure, they don't do a single line-item including each piece of wood--made up only about $1700 of a $280k home.

It's a lot of broad brush assumptions, but it's also pretty accurate.

 

[Sig]

There really isn't much more to a stix-n-brix home than a wood frame and cosmetic interior / exterior. Particle board isn't expensive anyway.

I actually just finished paying out on a claim on a 1600 sf home in Denver that burned to the ground. Lumber--as best I can figure, they don't do a single line-item including each piece of wood--made up only about $1700 of a $280k home.

It's a lot of broad brush assumptions, but it's also pretty accurate.

That's crazy! Out of curiosity, did that come from internal insurance tables, or quotes from actual builders, or something else? I always wondered how insurance companies came up with "actual replacement cost" on something as custom as an entire house.

 

[beerntrading]

That's crazy! Out of curiosity, did that come from internal insurance tables, or quotes from actual builders, or something else? I always wondered how insurance companies came up with "actual replacement cost" on something as custom as an entire house.

That came from an independent adjuster, and our total claim valuation was 4% off the contractor's bid. I should note that doesn't include delivery or labor.

Also, probably good to point out that isn't finish carpentry materials (which isn't very connected to lumber price)...only rough carpentry.

 

[Sig]

That came from an independent adjuster, and our total claim valuation was 4% off the contractor's bid. I should note that doesn't include delivery or labor.

Also, probably good to point out that isn't finish carpentry materials (which isn't very connected to lumber price)...only rough carpentry.

Thanks, learned something new!

 

[dealmaker]

I wonder if Home Depot and Lowes hedge their lumber prices. Like the airlines do fuel. And how would a new tariff apply to this? Just tacked on? HD and LOW can jack up their prices today on all existing inventory and any future inventory they have contracts on right? That goes straight to the bottom line.

They do not hedge their lumber prices.

 

[Money Trust]

I don't know what's going on in the lumber market but there's volatility now. Lumber is usually a pretty dull market.

 

[volente_00]

I wanna see someone build a 300K house with $6K (2%) spent on lumber.
Framing, trusses and sheathing with labor are about 17% for an AVERAGE house. And thats being CHEAP.
Thats 51K right there. A four man crew for 3 days with a crane for the trusses is about 3K.
So that's 48K in material costs... 20% of that is 9.6K
Whoever makes these figures has never built a house.

Can't speak for other parts of the United States but in Texas, to dry a new house in including all wood and standard windows you can figure on $10-$12 per slab sq ft.

 

[bone]

There has always been a thriving physical OTC market between mills and distributors. The CBOT futures contract never went anywhere. Where the market really gets pinched is during some catastrophic event - hurricanes in particular.