Sustainable Material Costs
The increase in building material prices is negatively affecting housing affordability, driven by rising costs of softwood lumber, steel, aluminum, and other imported materials and equipment. This volatility in prices is contributing to higher housing expenses.
According to the NAHB, the rising material costs are made worse by uncertainties within the production process and when supplies will be available to complete homes in a timely manner. Another key concern is whether or not the homes will appraise at the correct price to reflect these rising costs.
Builders are doing everything possible to avoid pricing consumers out of homes while still maintaining competitive prices necessary to operate their businesses — especially given the potential long-term impacts on consumers.