Why Are Lumber Prices and Building Costs Increasing?
You may have heard the news that building materials and building costs are increasing. Since the global pandemic, we have seen national pressure on lumber pricing, overall material shortages, and supply chain shortages. According to Forbes, “Wood demand shot up in the summer of the pandemic. Many homeowners were stuck at home, unable to vacation. With time and money on their hands, they headed to the local building supplies dealer for the materials to build decks, playhouses, she-sheds, and even additional rooms. Then in the autumn of 2020, homebuilders cranked up their construction. By December, single-family housing starts (seasonally adjusted) hit their highest level since 2006. This activity was driven by cheap mortgages.”
Labor Shortage Creates Supply Chain Issues
This combination of factors has really driven up lumber prices. On top of the supply and pricing demands, labor at many lumber mills has proved to be a challenge, amidst Covid-19 breakouts and overall labor shortages. This is also true for the trucking industry, with a national shortage of truck drivers, creating a whole supply chain issue. The result has been a 26% increase in building materials prices, according to the National Association of Home Builders.
Building Costs Increase, So Do House Prices and Build Timelines
Bloomberg says, “From lumber to paint to concrete, the cost of almost every single item that goes into building a house in the U.S. is soaring. In some cases, the price increases have topped 100% since the pandemic began.” This has caused homebuilding costs to skyrocket and build times to take significantly longer. If you can’t get the materials, you can’t build.
What Is Wayne Doing About It?
Every homebuilder in America is managing to the current state of the industry and the continued shortages. The new normal (for now at least) is that materials continue to cost more than ever before, and therefore, so do the products that use them – new homes being one of many.
We too are working diligently to keep build times on schedule and prices affordable. As always, we are committed to providing the greatest value for your money, and we have developed some new ways to make a Wayne home stretch your dollar even further.
- Smart Style: Smart Style exteriors have been introduced to add character and detail to your home without adding too much in the way of cost. Defined by clean lines and a tasteful mix of details, Smart Style is the smart way to match your sense of style to your budget. See all of our floor plans that feature Smart Style here.
- Updated Included Features: We recently updated our Included Features to have even more of the features you want in your new home without any additional cost. Some of our updated features are–
- Cultured marble vanity tops with oval or rectangular sinks in owner and main baths
- Genie™ universal wireless garage door remote
- Mohawk Luxury Vinyl Plank flooring in kitchen, baths, foyer, and laundry areas
Wayne Homes is doing everything we can to keep building costs as low as possible. We are working regularly with trade partners to ensure we are getting the materials as quickly and efficiently as possible. Our pledge to you is we will continue to manage pricing as best we can. We promise not to compromise quality and workmanship as we navigate these new economic conditions. Our goal is always to help you find the right home that fits your lifestyle, and that also includes your budget. We’re honored you put your trust in us, and we will do all we can to make the right choices, so you can build your dream.
Keep in touch to stay up to date on the latest pricing and features.
Wayne Homes is a custom homebuilder in Ohio, Pennsylvania, Michigan, and West Virginia (see all Model Home Centers). We offer over 50 fully customizable floorplans and a team dedicated to providing the best experience in the home building industry. For more information, Ask Julie by Live Chat or call us at (866) 253-6807.
Disclaimer: The details of this blog are accurate as of the publish date, but are subject to change.