Q: I read that lumber prices have fallen a lot. How will that affect residential real estate? Eric, Little Falls, NJ A: The Covid-19 pandemic caused lumber prices to skyrocket for a variety of reasons. Higher lumber prices meant that renovations, repairs, and new construction were all significantly more expensive which increased home prices. Wood framing is used to build 9 out of 10 single-family homes in America and the lumber price spike during the pandemic increased the average price of new single family homes by almost $20,000! Luckily, lumber prices recently fell to their pre pandemic levels. Despite the fact that housing activity has cooled this year, demand for housing is still relatively high in much of the country. […]
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More than one in every four houses purchased by a professional rental investor in the 4th quarter of 2021 was a new construction home–brand new homes were only 3% of what these investors bought during the 3rd quarter of 2019.
continue reading More developers claim that the difference between a new construction deal working financially or not working comes down to the parking requirement.
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