flexiblefullpage - default
Currently Reading

Building Material Costs Increase Upwards of 200% in One Year

Advertisement
billboard - default
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
 

Advertisement
leaderboard2 - default

Related Stories

Awards

6th Annual Most Valuable Product Awards

Drumroll ... Please join us in celebrating our 6th Annual MVP Awards winners, which represent the best in innovative building products

Sustainability

Fortera Takes Concrete Steps to Reduce the Climate Impact of Cement

Clean-tech company Fortera, which uses technology to capture carbon emissions form cement manufacturing, will open its first commercial-scale operation on April 12, 2024, in California

Building Materials

Lumber Leads Building Materials Prices Higher in March

Overall, the cost of building materials rose during March, with softwood lumber, gypsum products, and concrete all seeing price increases. Only steel mill materials saw price drops

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
halfpage1 -

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.