Surging Prices, Supply Shortages Have Impact Beyond Housing Segment

  • YoY cost of lumber has jumped by 90%, steel has risen by 67%, gypsum (used to make drywall) is up 12% and concrete is up 3%
  • The historically low cost of financing, increased level of savings and the need for more people to work and attend school online have generated demand for home remodeling and larger residences
  • It is estimated the leap in prices of building supplies has added $36,000 to the construction of a home and $119 to the monthly rent of a new apartment
  • Robust demand for homes with a tight supply of inventory has helped push the median price of an existing residence up 20.3% YoY
    • As costs climb, more potential homeowners are considering more affordable locations

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