Construction Rising Lumber Costs

[Mike Terry]

At the beginning of this year my partner and we’re considering building new houses due to the short supply of distressed properties in our market. Since then lumber prices alone are adding $24,000 to the cost of a typical single family home. This will continue to pressure affordability and discourage new home development at a time of record demand. Existing homes are appreciating at a rate reminiscent of the early 2000’s. When will rising costs slow the demand and to what extent? Share your thoughts.