The increased consumer demand and already-limited supply of homes nationwide has led to the highest increase in US housing prices since 2005. Adding to the skyrocketing home values is a major supply-side issue: the availability of lumber.
Lumber Prices Add $24K to Single-Family Housing Costs
According to NAHB, the cost of lumber in the United States has increased by over 180% since early 2020. This increased cost of softwood lumber and other key homebuilding supplies has resulted in a high price tag jump for new-construction homes.
Compared to April 2020, NAHB has found that:
- Single-family homes have seen an average increase in price of about $24,000.
- Multi-family homes have seen an average increase in price of about $9,000.
The increased cost of softwood affects so many parts of a new home build—from the structural framing and sheathing to the finishing of cabinets, doors, roofing, and siding—that the costs are inescapable for home builders and home buyers alike.
Some residential construction companies have had to raise sale prices by as much as $50,000, which prices many families out of buying the home at all. Other builders have had sales cancelled due to the uncertain timeline for completion and the soaring cost of finishing supplies.
The Lehigh Valley has experienced all of these issues firsthand, resulting in rising home prices since 2020. However, despite the costs of new construction, our region does have many older, recently remodeled, and newer-construction homes that avoid the supply-side issues plaguing brand-new builds. If you’re moving to the area, there’s still plenty of opportunity to find a suitable home.
Get Local Tips from Expert Lehigh Valley Movers
At O’Brien’s Moving and Storage, we’ve been a trusted Lehigh Valley moving company since 1928. Over the last century, we’ve worked with both families and businesses alike through all kinds of economic ups and downs—offering customized, cost-effective moving support in all situations.
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If you’re looking to move to, from, or within this region, start by contacting our knowledgeable movers in the Lehigh Valley, PA. Call O’Brien’s Moving and Storage to discuss your relocation and learn more about what to expect for your move. To sign up for a free online or in-home moving estimate, submit our quick contact form now.
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