MARSHALL TOWNSHIP, Pa. (KDKA) – If you’re planning to build a new home or renovate your current home in the near future, be prepared for sticker shock. The price of wood is skyrocketing.
It is growing so fast that contractors have a hard time predicting how much the job will cost.
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Lumber prices have increased 200% over the past year and there is no end in sight. In the meantime, house prices are rising as well.
The National Association of Home Builders estimates that the average price of a new home has risen nearly $ 25,000 so far this year and continues to rise.
The reason: wood. These are the bones of any house.
“Two by four, two by tens, the trusses have grown over one hundred percent,” said developer Ron Heurich.
Heurich built several homes in the Mallard Pond development in Marshall Township. He sells new and upscale homes. But he cannot forecast his lumber costs.
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“A piece of particle board, $ 9 a sheet last year. If you go to the store now, it’ll probably cost at least $ 33 a sheet, at a minimum, ”he said.
What causes the prices to rise?
Lumber factories have closed during the pandemic, tariffs on Canada and China have pushed up prices, and low interest rates have increased demand. For now, many contractors cannot guarantee their prices. Some therefore put indexation clauses in their contracts.
“We’re basically stuck eating a lot of costs. But with the new contracts, we have to be aware that things are increasing, ”said Heurich.
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And it’s not just the new homes. Renovation projects or simply adding a new patio have become extremely expensive. Despite this, with low interest rates, consumers continue to buy new homes.