The price tag on lumber, after declining since its all-time high in May, could climb higher through the early months of the coming year, experts recently told Insider.<\/p>\n\n\n\n
\u201cFor households earning the U.S. median annual income of about $70,000, the current inflation rate has forced them to spend another $175 a month on food, fuel and housing,\u201d chief economist for Moody\u2019s Analytics\u00a0Mark Zandi said recently.<\/p>\n\n\n\n
That\u2019s the equivalent of a full grocery, electric or cellphone bill,\u201d Zandi continued.<\/p>\n\n\n\n
In addition, global food prices have hit a decade high and\u00a0grew\u00a0for the second month in a row in September, according to a report from the Food and Agriculture Organization (FAO).<\/p>\n\n\n\n
A reason behind the price growth regarding lumber was a small increase in renovation demand once \u201cprice-sensitive\u201d buyers moved forward with home improvement projects since wood prices experienced a substantial correction, according to Justin Jalbert, a senior economist for Fastmarkets.<\/p>\n\n\n\n
However, he did not expect the kind of spike in lumber prices noted earlier this year, when there was a pileup of homes to be built and a shortage of construction supplies, while supply constraints eased.<\/p>\n\n\n\n
The market has finally transitioned to a more balanced state compared with being severely oversupplied in the summer months, which ultimately drove the massive correction in prices from record-high levels set in May,\u201d Jalbert explained.<\/p>\n\n\n\n