Drywall Prices Expected to Rise

Filed in Disaster Response, Economics by on September 15, 2017 0 Comments

While most building materials prices will likely increase in the wake of hurricanes Harvey and Irma, the price for gypsum might be the first to ascend as a result of the storms.

Last month, prices for gypsum products — drywall being a major one — fell for the first time in three months. But as NAHB economist David Logan noted in a recent Eye on Housing blog post, remodeling projects will be the first feasible construction efforts for much of Texas and Florida. This promises to drive up demand for drywall and cause prices to climb before those of other building materials.

For example, demand for framing lumber and concrete will rise later on because larger-scale, structural rebuilding projects usually take longer to get underway.

Unfortunately, builders have become all too familiar with the recurrent price increases for softwood lumber. A brief reprieve in June was the only month thus far in 2017 in which lumber prices recorded a drop (3%). But overall, prices have increased 22% since the start of 2016.

Go to Eye On Housing to read a more detailed assessment.

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