Lumber Price Increases Pushing New Home Prices Higher

If You're Considering Building a Home, Don't Wait. 

Soaring lumber prices, up 80% from mid-April lows, will add thousands to the cost of your new home. Home price increases will need to come into play, starting sooner rather than later in most regions.

Lumber prices have surged since mid-April 2020, moving from a low of $348 per thousand board feet to $627 per thousand board feet as of July 31. Quick set concrete and other building materials are on the rise as well. This increase will add thousands of dollars to the cost of a typical newly built home, increasing affordability concerns for buyers.

"When we see a price increase this large over such a short period, it's going to have negative effects on affordability for prospective homebuyers." - David Logan, Director of Tax and Trade Analysis at the National Association of Home Builders

Home Projects Partly to Blame

During the pandemic, many decided to fix-up or expand their current homes, creating a decline in the availability of necessary softwood materials such as plywood and 2x4s. Add Canadian lumber constraints, government-imposed factory lockdowns, and the increasing demand for new homes, and it's the perfect storm for a shortage of supplies and soaring prices.

If you've been in Home Depot lately, you may have noticed the lack of plywood and building materials and lack of sizes available. An essential homebuilding staple, the two-by-four-by-twelve Southern yellow pine treated, is tough to come by. A sheet of plywood has gone up 50% in price over the last three months.

Price fluctuations are normal, but this increase spike is not. Builders have to look far and wide to get their materials and wait longer to get them. Lead times have changed from one week on certain items, to over three weeks.

The William Ryan Homes Difference

Prices have been going up for some time now. While other builders have been taking things out of their homes and increasing pricing, William Ryan Homes is purposefully keeping the integrity and quality of their homes with a steady price increase. "We're trying to preserve affordability while still building equity into the homes already purchased this year.", said John Rushin, Chief Operating Officer for William Ryan Homes.

Now is the Time to Build Your New Home

All William Ryan Homes are energy efficient, saving you money year after year. And, many of our plans have a dedicated in-home office space, pocket office, or Study. With online learning and work-at-home having new meaning in our lives, "Home" means more than ever.

Timing is everything. With price increases looming, please take advantage of historically low mortgage rates combined with our monthly incentives for the best reasons to build your new William Ryan home now!