Rising Material Costs
Members are readily aware of rising material costs including lumber and reduced supplies which are having significant impacts on housing costs and construction timelines. The following is intended to provide information BILD Alberta has gathered to date through discussions with members, local associations, CHBA National and industry partners.
- The cost of various lumber products has increased anywhere from 125% to 200% from pre-pandemic times. This is adding on average $20,000 to a standard detached single-family home.
- The cost of most other materials has increased anywhere from 4 - 5%. This is adding (on average) another $20,000 - $30,000 to the cost of a standard detached single-family home.
Builders are reporting detached single-family homes have an additional $40,000 - $50,000 in construction costs due to the rapid escalation in lumber material costs. A detailed summary of this topic can be found here.
For more details on this subject visit the CHBA National website.
Why is the price of new homes increasing so much? The cost of building materials for all new homes and renovations in Canada and the United States has been steadily increasing over the past year due to pressures on the global supply chain. What is the supply chain? A supply chain is an order of…Read More