Lumber Price Spike Causing Problems For Builders And Homeowners
Nationally, lumber prices have skyrocketed in recent months. The increase is a result of both lumber shortages and higher demand stemming from the pandemic.
The Home Builders Association of Dayton says lumber prices have risen more than 180% in the past 10 months. That adds more than $24,000 to the price of a new home.
“While builders across the Dayton region are reporting solid demand for new homes fueled by low interest rates, favorable demographics and a suburban shift as a result of the COVID-19 crisis, many prospective buyers are hitting a brick wall due to a run-up in pricing that is directly linked to the surge in lumber prices,” says HBA Dayton C.E.O., Eric Farrell.
Home builders are saying the high prices are a threat to the housing sector and its role in the economic recovery.
“These prices are higher than I've ever seen," says Kim Haverstick, president of Haverstick Building in Dayton.
He says high-priced lumber is hurting builders and clients. Until the market stabilizes, he's got some advice for anyone considering a construction project.
“They need to work closely with their contractor and discuss the costs of the lumber so that each party understands that we're in a state of flux, that it's very difficult to pin down what the costs are going to be and who's going to pick up those costs.”
Haverstick says supply chain disruptions have also affected availability and pricing for other home goods, like appliances and electrical supplies.