Building costs continue to rise

Shortages of many essential materials needed to build homes have sent construction companies scrambling to find alternative – and frequently expensive – solutions so they can finish their projects. Over 90 percent of builders say they’re dealing with shortages of framing lumber, plywood, and oriented strand board. Other common materials in short supply include wood paneling, pipes, and ceiling joists.

Finally, dors, windows, and home appliances can be hard to get.

Higher costs for materials mean that the price of a finished home is also considerably higher – not exactly what the housing market needs right now.

Prices of building materials remain high

Green Escrow | New construction, housing

According to the Bureau of Labor Statistics, building material costs have increased by nearly 20 percent in the last 12 months. Steel mill products prices jumped 10.8 percent in July after increasing 6.2 percent in June. Gypsum proudctes – used for drywall – are up nearly 16 percent in 2021.

Interestingly, the price of lumber fell 29 percent in June but still remains nearly 72 percent above January 2020 levels.

All of these costs are reflected in the prices of new homes which are up nearly 6 percent over last year.