Expensive lumber costs have added $36,000 to the average price of a new home, report finds
lumberhas added to the costs of new houses in a year when all house prices have skyrocketed. NAHBfound that soaring lumber costs have added $35,872 to the average price of a new home.
- Experts are concerned that high home prices will hinder homebuying for many - especially millennials.
Just a few months ago, in February, the National Association of Home Builders (NAHB) released shocking data about how the historic appreciation in lumber prices was crimping the
Three months later, that number now stands at $35,872.The housing market took off last summer, as the pandemic enabled many to work from home indefinitely, and with mortgage rates so low, many people rushed to buy new homes. But the pandemic shut down lumber production, and it hasn't kept pace with building since.
A report from the NAHB in February said the lumber supply chain impact came as factories shut down almost immediately last March for safety reasons, and then as demand spiked, supply couldn't keep up. Lumber prices have jumped by 340% compared to last year.Insider reported on March 26 that because lumber prices are so high, home builders have been building fewer homes and intentionally raising prices to keep up with the high demand for houses amidst the low supply of lumber.
In addition, a report from Redfin - a
On March 12, the NAHB, along with more than 35 other housing organizations, wrote a letter to Commerce Secretary Gina Raimondo asking her to examine the lumber supply chain and look into solutions for the high costs.
They said: "Housing and construction can do their parts to create jobs, boost the
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