Skyrocketing Lumber Prices Add Nearly $36,000 to New Home Prices
Soaring lumber prices that have tripled over the past 12 months have caused the price of an average new single-family home to increase by $35,872, according to new analysis by the National Association of Home Builders (NAHB). This lumber price hike has also added nearly $13,000 to the market value of an average new multifamily home, which translates into households paying $119 a month more to rent a new apartment. Further adding to housing affordability woes, other building material prices have been steadily rising since 2020 and, like lumber, are in short supply as well.
"This unprecedented price surge is hurting American home buyers and home builders and impeding housing and economic growth," said NAHB chairman Chuck Fowke, a custom home builder from Tampa, Florida.