Challenges We Faced in 2021: Building Materials Prices
The rising cost of building materials was one of the primary focus areas for NAHB in 2021 as the home-building industry struggled with the far-reaching impacts of skyrocketing prices.
The year began with a letter to the Biden administration that highlighted the sharp increases in costs for lumber and oriented strand board as “unsustainable, particularly in light of a continued housing affordability crisis.” NAHB called for an investigation as to “why production remains at such low levels during this period of high demand,” which has continued to remain an issue.
These costs have subsequently translated into higher housing costs, which have affected the buying capabilities of many prospective home buyers. Top stories on NAHBNow in 2021 identified the monetary impact to consumers, and provided resources to help address the negative impacts of such dramatic price increases:
- Record-High Lumber Prices Add $24K to the Price of a New Home (Feb. 22, 2021)
- Skyrocketing Lumber Prices Add Nearly $36,000 to the Price of a New Home (April 28, 2021)
- What Builders Should Know About Appraisals and Lumber Prices (Feb. 23, 2021)
As the year progressed, NAHB continued its advocacy efforts through outreach to Commerce Sec. Gina Raimondo, Agriculture Sec. Tom Vilsack, U.S. Forest Service Chief Victoria Christiansen and U.S. Trade Rep. Katherine Tai, among others. Framing lumber prices began dropping in the summer after a peak in May, but as noted in another top post for NAHBNow, actual pricing was slow to follow suit as lumber worked its way through the supply chain.
Pricing has begun to creep back up and expanded to other building materials, as supply-chain challenges continue to ravage the home-building industry. Top NAHBNow posts highlight just how severe costs have risen in the past year:
- Building Material Prices Climbing at Record Year-to-Date Pace (Aug. 16, 2021)
- Building Material Prices: Large Increases Year to Date (Sept. 9, 2021)
NAHB remains vigilant in addressing these issues — most recently meeting with Canadian officials to discuss lumber tariffs and testifying before the House Natural Resources Republican forum on supply-chain challenges — and will continue to do so in the year ahead to stabilize prices and supply.
Latest from NAHBNow
May 30, 2025
NAHB Members Provide Final Recommendations for New WOTUS RuleNAHB members concluded their participation in multiple “waters of the United States” (WOTUS) listening sessions with strong showings in Washington, D.C., and Salt Lake City. In total, 12 NAHB members and four staff members from NAHB and state home builder associations (HBAs), representing 11 states, provided oral statements at listening sessions.
May 30, 2025
Statement from NAHB Chairman Buddy Hughes on DOL Decision to Pause Job Corps Center OperationsNAHB Chairman Buddy Hughes issued the following statement after the Department of Labor announced it was pausing Job Corps center operations nationwide.
Latest Economic News
May 30, 2025
Multifamily Absorption Moves Lower for New ApartmentsThe percentage of new apartment units that were absorbed within three months after completion continued to trend lower, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA).
May 29, 2025
Treasury Yield Increase Drives Mortgage Rates Higher in MayMortgage rates continued their upward trend in May due to market volatility triggered by fiscal concerns and weaker U.S. Treasury demand. According to Freddie Mac, the average 30-year fixed-rate mortgage rose to 6.82% — a 9-basis-point (bps) increase from April. The 15-year fixed-rate mortgage increased by 5 bps to 5.95%.
May 28, 2025
Aging-in-Place Remodeling Work Fell While Familiarity and Receptiveness Remain HighOnly 56% of professional remodelers undertake projects designed to allow homeowners to Age-in-Place (AIP), according to results from NAHB’s Q1 2025 Remodeling Market Index (RMI) survey.