OSB Prices Have Skyrocketed More than 500% Since January 2020

Material Costs
Published

Framing lumber prices garnered more attention than any other building material over the past year as prices quadrupled between April 2020 and May 2021. But even as lumber prices decline, the spotlight on lumber continues to crowd out the story of meteoric price increases of another wood product integral to the integrity of a building’s structure — oriented strand board (OSB).

Oriented strand board (OSB) prices have skyrocketed

The price of OSB has increased 510% since January 2020, exceeding the peak price increase in lumber by nearly 180 percentage points. Although plywood panel prices have substantially increased over the past 18 months as well, the increases have been less than half those seen in the OSB market.

In addition to elevated prices, acute shortages have plagued the residential construction industry — particularly after the severe winter weather experienced in the south in February.

Prices and price fluctuations vary depending on use and location, with increases since the start of 2020 exceeding 650% for some OSB producers' products.

OSB accounts for the most wood product used in structural panel applications in new construction

For example, OSB is so in demand that it accounted for roughly two-thirds of wood panels used in walls sheathing in 2019.

Depending on the location of a build, the thickness of OSB sheathing in wall applications is generally 3/8” or 7/16” (with some use of 15/32”). The mill prices of these dimensions (shown below) have climbed an average of 491% since January 2020.

The “delivered” price of 3/8”-thick OSB sheathing in Portland, Oregon, has climbed an incredible 662% over the same period.

Oriented strand board is heavily relied upon in roofing applications as well

Roof sheathing comprising OSB made up nearly two-thirds of all roof sheathing in 2019.

OSB sheathing used in roofing is typically 7/16” and 15/32” thick because it is intended to resist “racking,” resulting from high winds or earthquakes, and support heavy snow loads. In areas with minimal snow loads, building codes may allow for the use of 3/8” OSB.

As lumber prices recede, more attention must be given to the stratospheric price level of OSB. OSB, like framing lumber, is an integral home building material. The wide usage of OSB in new home construction should lead the market to shine a greater spotlight on OSB prices, customer popularity and scarcity.

NAHB economist David Logan provides more analysis in this Eye on Housing blog post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Workforce Development

May 12, 2025

Alabama Workforce Development Bill Passes Unanimously, Benefiting Local Academies

The bill allows for local funding of Home Builders Association of Alabama-recognized (HBAA) Home Builder Academies, which train potential workers on the basics of the construction industry.

Economics

May 09, 2025

Remodelers: Are Costs Hurting Your Profit Margins? Help Us Advocate for You

As a reminder, NAHB is seeking data from remodelers to produce average profit benchmarks for the industry for the next edition of the Remodelers’ Cost of Doing Business Study.

View all

Latest Economic News

Economics

May 09, 2025

Consumer Credit Slows in the First Quarter of 2025

Consumer credit continued to rise in early 2025, but the pace of growth has slowed. Student loan balances rose year-over-year as borrowers resumed payments following the end of pandemic-era relief. However, growth remains modest.

Economics

May 08, 2025

Multifamily Developer Confidence Falls in the First Quarter

Multifamily developers are starting the year in a cautious state, according to Q1 2025 results from the Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB). The MMS produces two separate indices.

Economics

May 07, 2025

Fed Remains on Pause with Rising Uncertainty

The Federal Reserve remained on pause with respect to rate cuts at the conclusion of its May meeting, maintaining the federal funds rate in the 4.25% to 4.5% range. Characterizing current market conditions, the central bank noted that the “unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid.” However, the Fed noted that “inflation remains somewhat elevated.”