CNBC is the latest to talk honestly about rising building material prices and as everyone knows, once something goes up it will continue until supply outruns demand.
Consumers want more newly built, affordable homes, but builders are finding that hard to deliver, especially as prices for framing lumber spike ever higher.
Lumber prices inched above $1,000 per 1,000 board feet Thursday morning before falling back below that milestone, according to Random Length Lumber Futures for March. The high of $1,004.90 is double the price from just three months ago and a record.
Higher lumber costs are likely behind a drop in January housing starts. Starts of single-family homes, which are the most desperately needed, fell 12% from December, according to the U.S. Census.
“Builders report concerns over increasing lumber and other construction costs and delays in obtaining building materials,” wrote Robert Dietz, chief economist at the National Association of Home Builders. “Rising interest rates will also erode housing affordability in 2021, as inventories of existing homes remain low.”
CLICK HERE to read the entire CNBC article