Currently Reading

Building Material Costs Increase Upwards of 200% in One Year

Advertisement
Building Materials

Building Material Costs Increase Upwards of 200% in One Year


June 4, 2021
stack of building lumber
Photo: Andy Dean | stock.adobe.com

Building a home in the U.S. has never been more expensive than it is today, says Bloomberg. Building material costs have increased upwards of 260% since a year ago, resulting in difficult conversations with buyers and builders unable to meet sky high demand. One Idaho builder is spending $40,000 to $100,000 more during construction, mainly due to rising lumber costs. On average, the price of foundation and concrete slabs have advanced 104% this year, trusses cost 146% more, and lumber is up 262%. Read more to see a full breakdown of specific material cost increases.

In Boise, Idaho, one of the hottest housing markets in the country, Steve Martinez opened up the financial books of his construction company, Tradewinds General Contracting Inc., to Bloomberg News to reveal the magnitude of the cost surge. He’s had to raise prices on some of the houses the company makes—which include the Baybrook, a single-floor, 3,031-square-foot model—to offset the higher costs, leading to many “tough conversations” with clients.

With raw materials prices continuing to surge around the world, the pressure on builders to increase costs is likely to grow stronger.

“This could be industry killing if things continue going the way they’re going,” said Martinez, who has had to tack on price increases during construction of anywhere from $40,000 to $100,000, primarily due to rising lumber costs. “We’re putting projects off. We’ve got clients that are hitting their price ceiling.”

Read More
 

Related Stories

Building Materials

Lumber Falls to Lowest Price Since March

Lumber prices dropped 5% on Friday to the lowest price since March and 37% since prices hit a peak in May. Lumber futures decreased for the eighth…

Housing Giants

The Supply Chain's Perfect Storm

Never before have home builders had to navigate a market where houses are pre-selling fast while the cost of so many resources is rising and so many supplies are constrained at the same time

Construction

Lumber Veteran Sees Holding Off on Construction as 'Sensible'

A National Association of Home Builders’ survey found 19% of builders are delaying building in order to mitigate high lumber costs, and one lumber…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.