It’s really no secret that everything from lumber to paint to concrete is on the rise. In fact, almost every single item that goes into building a house in the U.S. is on the rise.
While the pandemic has created issues, other things at play are impacting overall construction costs too.
Rock-bottom mortgage rates due to the great migration from the city to the suburbs have contributed to the greatest problem of all – too much demand for builders and suppliers to handle.
That means that increased prices and inflation pressures are percolating through the booming U.S. economy.
So, the real question is, are these issues going to balance out as we ease out of the pandemic?
Are Home-building Costs Balancing Out?
With raw material prices continuing to surge around the world, the pressure on builders to increase costs is likely going to continue to increase. In a nutshell, this could be disastrous for many people who work in this field and will ultimately cost those looking to build a bit more. (In some cases, a lot more.)
Another common thing is that people are reaching their price ceiling. This means that because of the increased prices that contractors have to charge, those looking to build cannot continue with the project or start in the first place. Absolutely no one wants to put projects off, but that is what is happening.
Here are the three key materials you can expect to see a steady increased price on:
While it’s hard to predict exactly what will happen at the end of the pandemic (largely because we haven’t reached that point yet), we can see the trends that are happening now. Let’s hope that things will get better.
Give us a call so we can help you navigate these unprecedented waters!