Published by FOX Business | February 17, 2022
Lumber prices over the past year added over $18,600 to the average price of a new single-family home
Like many consumers, U.S. homebuilders are feeling an inflation pinch as the industry stares down rising costs and ongoing supply chain delays.
“The No. 1 problem right now is increased building material costs and the delay in getting them,” National Association of Home Builders CEO Jerry Howard told FOX Business’ Stuart Varney Wednesday.
“I’ve had guys tell me they’re having up to four- or five-month delays in getting everything from cabinets, garage doors, appliances, even trusses.”
Whirlpool, in its January earnings presentation, noted that “supply constraints and inflationary pressures will persist” in 2022.
As for costs, lumber prices are up 32% over the past year, approaching record levels hit last May.
Prices for lumber, used for framing a home, have added more than $18,600 to the average price of a new single-family home. The lumber price hike has also added nearly $7,600 to the market value of the average new multi-family home, which translates into households paying $67 a month more to rent a new apartment.
Aluminum has gained over 56% during the past 12 months and is just shy of a record high of $3,300 per ton, as noted by Trading Economics.
According to NAHB Chief Economist Robert Dietz, overall residential construction costs are up 21% year-over-year. The increased costs coincide with the 30-year fixed-rate for mortgages surpassing 4%, the largest single-week increase since March 2020.
