Supply Chain Drives Up Home Prices
According to home builders, materials cost increases are driving new construction home prices up, as much as 14%. Lumber price spikes have been dramatic due to mills closing the Pacific northwest and the southeast United States, tariffs imposed on Canadian softwood lumber, and increased demand for new housing. Builders are not making additional profit; the increase is entirely due to rising materials costs. That, in turn, has caused the price of an average new single-family home to increase by $24,386.
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[…] new construction does not appear to be a savior for the inventory issues, as the pandemic has caused raw material prices to skyrocket. So the answer to our constrained inventory of homes for sale continues to […]
[…] loop? Well, the latest stories seem to indicate that new construction may not be our savior. Prices of construction are increasing dramatically because of supply chain issues (see, pandemic, among other causes). Lumber prices, in particular, […]
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