Both the construction and purchase of homes are heavily impacted by the drastically rising lumber prices. | Canva
Both the construction and purchase of homes are heavily impacted by the drastically rising lumber prices. | Canva
By now, almost everyone in the country is familiar with what is happening to lumber prices.
For months, lumber prices have skyrocketed, reaching a pinnacle earlier this year during which any type of wood was unaffordable for those hoping to complete projects around their homes. Reports show that the price of lumber increased by 300% this spring compared to last year. Lumber prices reached an all-time high on May 28, costing $1,515 per thousand board feet.
As it turns out, the increased lumber prices aren't only affecting home projects, but also the ability of companies to build homes. As a result, housing prices have been driven up drastically in recent months.
House Builders Association of Georgia Vice President Austin Hackney told The Center Square that the inflated prices of building materials have added nearly $36,000 since April 2020 to the price of an average new single-family home and nearly $13,000 to a new multifamily unit's market value. Hackney also said every time the median price increases, another 153,000 households are priced out of the market.
The Georgia Association of Realtors told The Center Square that, year over year, home sales prices have increased by 20%, with the median sale price of a Georgia home increasing by 23% since last year, to $240,000. Houses in Fulton County have increased in price by an even steeper margin, climbing by 29.4% since last year, to $433,500, according to The Atlanta Journal-Constitution.
Data released by the National Association of Home Builders (NAHB) reveals that 62% of home builders have increased their prices, 59% are pre-ordering materials, and 20% have abandoned projects altogether due to inflated prices. NAHB data also shows that 60% of American households cannot afford the median price of a house, which is now $346,577.
This has culminated in higher, more unattainable prices for homes in Fulton County and around the rest of the country.
According to a recent poll, 88% of respondents believe inflation will at least somewhat increase during Joe Biden’s time in the White House, and 83% are concerned or very concerned about it.
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