Material Costs

Building Material Prices: Large Increases Year to Date

Filed in Economics, Material Costs, Trends by on September 9, 2021 10 Comments
Building Material Prices: Large Increases Year to Date

Although the recent drop in softwood lumber prices since mid-May is helping bring costs down (after having driven them up drastically earlier in the year), the decline has been offset by large increases in the prices of several other building material products.

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Building Material Prices Climbing at Record Year-to-Date Pace

Filed in Economics, Material Costs, Trends by on August 16, 2021 4 Comments
Building Material Prices Climbing at Record Year-to-Date Pace

Building material prices have increased 19.4% over the past 12 months and 13% year to date, according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. Prices paid for goods used in residential construction (excluding energy) rose 0.2% in July after climbing 3% in June (not seasonally adjusted). Building materials (i.e., inputs to residential construction less food and energy) prices have declined just twice since December 2019.

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2 Significant Headwinds for Housing’s Growth

Filed in Economics, Housing Affordability, Material Costs by on August 6, 2021 4 Comments
2 Significant Headwinds for Housing’s Growth

Although new home sales are 13.5% higher on a year-to-date basis compared to 2020, the June data marked the third consecutive monthly decline. Rising prices and lingering uncertainty will hinder the industry at least through the end of the year.

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Housing Affordability Plunges on Soaring Material Costs, Rising Home Prices

Filed in Economics, Housing Affordability, Material Costs by on August 5, 2021 4 Comments
Housing Affordability Plunges on Soaring Material Costs, Rising Home Prices

Soaring building material costs, high demand and low inventory have added tens of thousands of dollars to the price of a new home and caused housing affordability to fall to its lowest level in nearly a decade during the second quarter of 2021.

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Builders Engage Policymakers in Supply Chain Roundtable

Filed in Material Costs by on August 4, 2021 0 Comments
Builders Engage Policymakers in Supply Chain Roundtable

Sens. Jerry Moran (R-Kan.) and Jeanne Shaheen (D-N.H.) hosted a virtual home building supply chain roundtable yesterday with Commerce Sec. Gina Raimondo to address disruptions that have resulted in soaring construction costs.

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Video: NAHB Chairman Details Lumber Victories, Ongoing Work Ahead

Filed in Material Costs, Membership by on August 2, 2021 1 Comment
Video: NAHB Chairman Details Lumber Victories, Ongoing Work Ahead

In the August Chairman’s Update with NAHB Chairman Chuck Fowke, members learn about recent victories NAHB achieved in the lumber and supply chain arena.

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Top Canadian Official Tells NAHB Canada Seeks New Lumber Trade Deal

Filed in Advocacy, Housing Affordability, Material Costs by on July 22, 2021 1 Comment
Top Canadian Official Tells NAHB Canada Seeks New Lumber Trade Deal

Mary Ng, Canada’s top trade official, expressed a strong willingness and desire to engage in negotiations with the United States on a new softwood lumber trade agreement during a video conference meeting yesterday with NAHB CEO Jerry Howard and senior staff.

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Led by OSB, Lumber Products Now Add Nearly $30K to the Price of a New Home, $92 to Rent

Led by OSB, Lumber Products Now Add Nearly $30K to the Price of a New Home, $92 to Rent

Changes in prices for softwood lumber products that occurred between April 17, 2020 and July 8, 2021 have added $29,833 to the price of an average new single-family home, and $9,990 to the market value of an average new multifamily home, according to NAHB’s latest estimates. The increase in multifamily value, in turn, translates to households paying $92 a month more to rent a new apartment.

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At NAHB’s Urging, White House Holds Supply Chain Summit

At NAHB’s Urging, White House Holds Supply Chain Summit

NAHB’s tireless efforts to engage the White House to convene a home building materials supply chain summit to seek out solutions to end production bottlenecks that have resulted in soaring material prices has borne fruit.

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OSB Prices Have Skyrocketed More than 500% Since January 2020

Filed in Advocacy, Housing Affordability, Material Costs by on July 15, 2021 3 Comments
OSB Prices Have Skyrocketed More than 500% Since January 2020

Framing lumber prices garnered more attention than any other building material over the past year as prices quadrupled between April 2020 and May 2021. But even as lumber prices decline, the spotlight on lumber continues to crowd out the story of meteoric price increases of another wood product integral to the integrity of a building’s structure — oriented strand board (OSB).

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