New Home Sales Take Hit From Higher Building Costs
We recently posted about how sales of new single-family houses were down 5.9%. The NAHB’s Eye on Housing says higher building costs, longer delivery times, and general unpredictability in the residential construction supply-chain are now having measurable impacts on prices. In fact, the NAHB has estimated that higher lumber costs alone have been increasing the price of new homes by 10’s of thousands of dollars.
“Higher costs have priced out buyers, particularly at the lower end of the market. A year ago, 45% of new home sales were priced below $ 300,000. In April 2021, only 27% of new home sales were priced below $ 300,000.”
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