The significant increase in softwood lumber prices over the past 12 months have added $35,872 to the price of an average new single-family home, $12,966 to the market value of an average new multifamily home, and approximately $119 a month in rent for households renting a new apartment, according to the latest NAHB estimates. Prices reported by Random Lengths for builders across lumber and manufactured lumber products have increased 184% and 190% in the single-family and multi-family markets, respectively, from April 2020 to April 2021. Due to factors such as interest on construction loans, brokers’ fees, and margins required to attract capital and get construction loans underwritten, prices to home buyers have increased by more than they have for builders. According to NAHB’s priced-out calculations, the increase in the average new home price has priced out more than 5.5 million households.
Read More
