Understanding the major influences on residential construction in the U.S. can help your business anticipate pro and DIY needs. As housing starts across the country remain strong, take a look at new research compiled from the National Association of Home Builders (NAHB) to see where home construction is headed in the coming months. For more information on any of the trends below, visit nahb.org.
Lumber prices have skyrocketed 180%.
Since last April, lumber costs have added an additional $24,386 to the average new single-family home. The price is affecting existing homes, too, adding roughly $9,000 to market values of multifamily homes. NAHB estimates the price of framing lumber hit $975 per thousand board feet compared to $350 in April 2020.
An affordability crisis is stalling potential sales.
More than 75 million U.S. households are currently unable to afford a new median priced home at $346,757. Builders cite several factors contributing to unaffordability, including shortages and delays in getting building materials, higher product costs and a continuing skilled labor shortage.
Builder confidence remains strong.
Strong buyer demand offset supply chain obstacles and rising materials prices to help raise overall builder confidence levels. The figure stood at 84 in February, gaining one basis point from January, as determined by the NAHB/Wells Fargo Housing Market Index. NAHB chief economist Robert Dietz says demand remains strong due to low mortgage rates and a shift to lower-cost markets.