Inflated Cost of Lumber and Building Supplies Making Housing Unaffordable for Some
Contractors say demand is outpacing the supply chain of building supplies, and its causing prices to rise to levels never seen before.
In 2020 when the Coronavirus Pandemic forced mills to shut down and production to slow at factories, many believed that the housing and construction market would also slow.
The construction market held steady, and now builders and contractors say prices have double and tripled for supplies.
Some materials have went up as much as 700%.
OSB is an essential building material used in the construction of new homes, and the recent price increase has contractors looking for alternative materials.
“One OSB package was $2100 a year ago, last Monday on the same house, it was $16,000,” said Russel Davis Executive Vice President of the Home Builders Association of Alabama.
Higher prices can be expected in today’s economy where the price of everything from food to cars is up, but contractors suspect there is more the the higher prices than supply chain issues.
Some have suggested that price gouging by supplies is contributing to the increase.
“We have been urging our Legislators and Congressional Delegation to look into that just to see what’s going on because we don’t feel that right,” says Davis.
The prices for building materials is starting to drop, and models predict prices will continue to drop into fall when demand is usually lower.
However, they don’t expect to see pre-pandemic prices.
According to Lowder New Homes in Montgomery, the price of their average home his $40,000 more than it was last year.