Why Building Costs Are so Crazy Expensive
It all started with toilet paper. You might laugh, but it’s true. The pandemic has had an extraordinary effect on the availability, in some cases, of life’s basic necessities, as well as other critical materials. The culprit of these incredibly high building costs? Supply chain.
According to Business Insider, here’s what happened. As you well know, the pandemic forced us all to stay in and work from home, which caused many people to evaluate their workspaces. Consequently, they got the itch to look for a new house. About the same time, mortgage rates got super low, which created the perfect storm: people could buy homes at great interest rates. As a result, lumber got really expensive—factories simply halted production out of precaution to keep their workers safe. Over time with the gap widening between supply and demand, housing prices went up.
In fact, the National Association of Home Builders reported that since April, the average price of a home increased by $36,000 because of the production shut down. No one was out there chopping down trees. Since April 2020, lumber prices have gone up 200%. A more recent study from Random Lengths, a wood products tracking company, shows daily prices of lumber are up 67%, up 340% from last year. Remember, wood doesn’t just comprise the frame of your home. You’ve got floors, cabinets, windows, and doors to build.
Consider this: for years, if you wanted 1,000 board feet of lumber, the cost would be somewhere between $200-$400. Now, it’s above $1,000. Let’s break it down even more. The length of a board foot is 12x12x1 inches. The average, new single-family home requires nearly 16,000 board feet. So, a while back, a new house would cost $10,000 in wood. Now it’s $40,000, that is if you can find the lumber. Are your eyebrows pushed clean up to your hairline?
Additionally, while we’ve all been stuck in our casas, home improvement projects exploded in popularity. Once more, what do you need to add to that new bathroom or bedroom? Yep, lumber.
Roofing Costs, Too, Are Through the Roof
It’s a fact: Roofing costs have also been affected by COVID-19. The same dynamic has been in play: manufacturers shut down during the pandemic, which is causing a delay in receiving materials. However, if you couple all this with the fact that we live in a two-season state (hot and cold), the situation escalates, putting a strain on the supply chain, causing prices to go up. Cha-ching.
All you have to do is look back at February during Snowvid, aka Snowmaggedon. One week we were deluged with ice, snow, and sleet. A week later, it was 70 degrees. Texas weather is insane. Some people are still dealing with getting new a new roof. And here’s the rub: Right now, the plants are mostly focused on making shingles common in the marketplace. If your roof requires custom shingles, you’ll most likely have a delay. If you ask for rush delivery, you’ll pay the price.
And now that we’re in Texas storm season, we’re waiting to see what else Mother Nature has in store. We’ve already had hail, and you can bet a few twisters are on the way. All of these things drive costs up.
So what do you do? First up, protect yourself with quality materials—and a quality roofer, someone you can trust. Make sure you have a good, sturdy roof, one with a guarantee, so that when chaotic weather descends upon you, you’re prepared.
About Peak Roofing & Construction
Peak Roofing & Construction is family-owned, with 30-years of experience. Bonded, insured, and accredited, we provide roofing, gutter, fence, window, and exterior facelift services. Guaranteed. Call (972) 335-7325 in Dallas-Fort Worth (residential & commercial), including Arlington, Coppell, and Richardson, Texas.