In just three short weeks, the NAHB has announced an additional $12,000 to the cost of a typical single-family home. THREE WEEKS!
Here's a fact not many of us knew. About 1 in 4 homes for sale are now newly built, the highest share ever. Historically new homes make up about 1 in 10, but fierce buyer competition is behind that shift. Prices for new and existing homes are at record highs.
Related Article: Escalating Lumber Pricing Add $24,000 to Average New Home
With lumber prices seem to set a new record almost daily, now up 67% this year and up 340% from a year ago. And lumber doesn’t just go into framing a house. Those added costs hit cabinets, doors, windows and flooring.
Lumber prices are skyrocketing for various reasons beyond just high demand from homebuilders and remodelers. Lumber tariffs had prices already rising a year ago, but then when the pandemic hit, production shut down. The expectation was that housing demand would dry up for a long time. But instead, after a brief pause, it came roaring back. Homebuilders were caught off guard, as were lumber producers.
The surge in lumber prices in the past year has added $35,872 to the price of an average new single-family home and $12,966 to the market value of an average new multifamily home, according to the NAHB.
CLICK HERE to read the entire CNBC article
Gary Fleisher is the Managing Director and contributor to the Modcoach Network and its affiliated blogs. Email at email@example.com
Sign Up to receive the Modcoach News newsletter twice a week