If you’ve walked into a home improvement or hardware store lately, you may have noticed a drastic increase in the price of lumber.
Brian Eiseman from Stoneshire Builders said, “Lumber prices on certain lumber items are up 400%. For the average home that increase is $20 to 25,000 just in the cost of lumber.”
He said the recent price hike has two effects on his industry. He said, “The cost of building is significantly more than it was at this time last year. But the other side of what it’s done is the huge demand across the country has made it difficult to get certain materials.”
The effects are also hurting realtors. Realtor Jeff White and a partner started Latitude 47 last year to build patio homes in Lincoln.
White said, “Last year when we had the patio homes built out, which is a 1400 square foot, three bed, two bath, single-level slab on grate, the lumber package came in at about $11,100.”
But that price has skyrocketed. One year later, building that same house that same lumber package came in at $28,300.
So why the sudden increase? Eiseman said, “You’ve got this significant demand, but then you’ve also got the issue of a lot of places where these plants are, they’re still shut down or partially shut down with COVID.”
The problem is trickling down — to these businesses — then to you.
White said, “We should see anywhere from a 7 to 10 percent increase year over year from the prices of 2020 through 2021, which I feel is pretty drastic.”
He said that even with these price increases, the demand is still there, and people are still buying. He said, “There’s definitely a lot of building going on, and houses are getting snapped up as quickly as they could go up.”