Since Jan. 1, on average, builders said, their drywall
prices have surged by 30 percent, lumber prices are 15 percent higher, and
concrete and flooring costs are up 5 percent.
Other building supplies are going up, too. Prices for siding
and windows made from PVC, a petroleum byproduct, have gone up an average of 7
percent this year.
Louisiana-Pacific Corp., the Nashville-based building
products company, reported earlier this week that it saw an 82 percent increase
in average first-quarter prices for its oriented strand board, or wood-particle
board. Those prices are set on futures markets.
Builders and industry officials say three key factors are
driving prices higher:
- Greater demand.
nearly 50 percent in the 12 months ended in March, pushing new home
construction past the one million mark for the first time since 2008. Permits
also are at a five-year high. - Supply limitations. Producers of drywall, concrete and other
construction materials shuttered plants and reduced production during the
housing slump. Those facilities are only now starting to come back online, at a
fraction of their previous capacity. - Labor issues. The homebuilding industry has lost nearly 40
percent of its workers since the housing boom’s peak in 2006. Subcontractors
are again in hiring mode, but many workers who left the industry or the country
are unlikely to return.
typical 2,500-square-foot single-family house.
