Just as the prices of land fluctuates based on supply and demand, so too do building materials. Just a few months ago, these costs were still low due to the drop off in construction. Now that the market has turned a corner, demand for construction materials is increasing, and thus prices are following. So too will labor costs, as the demand begins to stretch thin the number of construction companies remaining that survived the downturn.
The price of lumber has increased 26% in just the past four months.
And it’s not just lumber: Materials costs for insulation, drywall, copper, and steel are all increasing as the economy rebounds both here in the United States and abroad as well. Demand has suddenly increased when production had almost stopped in some industries, and a PRICE SNAP is occurring. NOW is the best time to build before material prices limit your options. Read more about the increases in construction materials here.