Performance Property Real Estate Question

How Lumber Prices Are Affecting Home Affordability & Prices

Q: Gerald, I have been a builder for over 20 years and the price of materials and labor are crazy right now.  Do you think the price of lumber and other building materials will go down anytime soon? Joe, Point Pleasant, NJ A: After several months of price declines last spring and summer, lumber prices are skyrocketing once again. Lumber prices have almost tripled in the last 4 months. In fact, the latest wave of rising lumber prices adds almost $20,000 on average to the price of a new home which in turn reduces housing affordability especially for first time home buyers. Soaring lumber prices are unfortunately part of a bigger supply chain disruption problem caused by waves of the […]

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