New Home Builders Still Squeezed by Building Costs
Residential construction costs went up again in March. Based on Bureau of Labor Statistics data, prices have increased 8% since the beginning of 2022 alone. The main culprit is a rise in building material costs that have risen 33% since the pandemic began and 20.4% year-over-year.
This has led to a 31% increase in new home prices in only three years, with average new home prices hitting $511,000 in February 2022. But there's some good news: lumber prices have fallen 39% since March 2022, and 52% below the peak price of $1,733 per thousand board feet in May 2021.
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