The booming housing market continues to drive the economy forward, but home builders could face some difficulties with the rising costs of lumber due to supply shortages.
Property developers are forced to make changes to their plans because of the lumber shortages. Prices have reportedly added $19,000 to a newly built home price. Even the rental market sees climbing costs that threaten the sector’s survival.Â
The lumber shortages began in 2020 when sawmills closed due to the COVID-19 pandemic. Health and safety restrictions combined with an expected economic crash led to the lumber industry being slow to pick up production. The lumber prices caused the average new single-family home to rise to $35,872.
Lumber prices surged in May 2021, with softwood lumber costs exceeding $1,600 per thousand board feet. The price briefly lowered close to pre-pandemic levels before rising again. Between November 2021 and January 2022, wood prices more than doubled, crossing the $1,000 per thousand board feet once more.
With the lumber shortages, homebuyers in Texas have been forced to wait longer for their homes to be completed, pushing building schedules back by months.Â
New parents, Mickey Wilson and Elina Morano of Little Elm, Texas, revealed their story of buying a newly constructed home. Last year, the new parents added their names to a waitlist for a two-story house at a new development in Aubrey. Wilson and Morano wanted a multi-level residence due to both of them working from home.Â
After a long wait, the couple was informed that their two-story dream house was no longer available. The lumber shortages and global supply chain issues were reportedly the cause.
Mickey and Elina were disappointed but stated that they would make things work in their current home. “Defeated, you know, definitely felt defeated. I felt kind of lost, like what do we do,” said Wilson. “We’re going to just have to figure it out.”
