Shoppers seeking newly constructed homes are facing sharply increased prices as the cost of lumber has soared to record highs. Many buyers are finding themselves priced out of the new-home market, builders say.
Recent price spikes in lumber have added more than $16,000 to the typical cost of a new single-family home. The multifamily sector is also feeling the impact, with the typical apartment seeing an increase of more than $6,000, according to data from the National Association of Home Builders.
The increase has priced more than 2.1 million U.S. households out of the market for a median-priced new home, according to the NAHB. Average lumber prices have increased by more than 170% since mid-April.
Source: “NAHB Warns That Record-High Lumber Prices Could Drive Up Housing Costs,” BUILDER (Oct. 9, 2020)