Lumber

Discussion in 'Commodity Futures' started by vanzandt, Apr 25, 2017.

  1. 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.
     
    #11     Apr 25, 2017
  2. Sig

    Sig

    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...
     
    #12     Apr 25, 2017
  3. 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.
     
    #13     Apr 25, 2017
  4. Sig

    Sig

    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.
     
    #14     Apr 25, 2017
  5. 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.
     
    #15     Apr 25, 2017
  6. Sig

    Sig

    Thanks, learned something new!
     
    #16     Apr 25, 2017
  7. dealmaker

    dealmaker

    They do not hedge their lumber prices.
     
    #17     Apr 26, 2017
    vanzandt likes this.
  8. I don't know what's going on in the lumber market but there's volatility now. Lumber is usually a pretty dull market.
     
    #18     Apr 26, 2017
  9. volente_00

    volente_00


    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.
     
    #19     Apr 29, 2017
  10. bone

    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.
     
    #20     May 1, 2017