While the housing industry is booming the lumber industry is suffering. Demand for lumber is increasing and the lack of supply is creating a huge increase in prices. The global pandemic of COVID – 19 forced lumber production to shut down back in April of 2020. As if that wasn’t enough, in addition to the shutdown there was an increase in tariffs that were added to the cost of lumber as well.
What Does This Mean for Homeowners or People Looking to Buy New Homes?
News19 shared an article that stated, “Lumber prices have more than quadrupled since the pandemic started,” With this information, some builders may suggest to homeowners that they hold off on the renovations they are looking to complete. Lumber is not only needed for the foundation of home construction but is also used in materials for cabinets, flooring, windows, and doors. This means that homeowners should expect to see an increase in prices for these projects as well. While there is no evidence that shows if this increase will stop any time soon the National Home Association of Builders provided the following facts:
- The spikes in lumber prices have added nearly $36,000 to the average price of a new single-family home, and nearly $13,000 to the price of a multifamily home since April 2020
- Lumber prices have increased nearly 50% since April which is the largest four-month gain since 1949.
- The housing sector has been and still is a leader in the nation’s economic recovery. These high increases in prices can potentially hurt housing affordability for Americans.
We understand that not all home renovations can wait. Some projects just need to be done now. That is why we created Dibbs. The app allows you to post your job and your budget and let the professionals come to you. Don’t spend time and effort comparing prices running from store to store when you can get all you need right on your phone from Dibbs. Let the contractors come to you and compete for your business with their best price. Download the app today on iOS