Building or Purchasing a U.S. Home? It’s Getting Even Pricier

By Vince Golle
Bloomberg Markets
October 19, 2017
Category: Business & Politics
Region: Canada, United States

A confluence of disasters is giving the U.S. construction industry a strong dose of inflation. The roots of pricier building supplies stretch from the wildfire-stricken forests of British Columbia to the hurricane-affected coasts of Texas and Florida. Supply concerns and home-rebuilding efforts, along with U.S. duties on Canadian timber, have driven softwood lumber prices on the Chicago Mercantile Exchange to the fifth-highest peak since 1986. For Americans whose homes were damaged by the tropical storms, bigger repair bills are in store. For those in the rest of the country, new-home prices may stay elevated as builders pass along the higher construction costs. …Higher costs of lumber and wood products for framing and sheathing, which accounted for almost 20 percent of the price of building a home in 2015, means property owners will receive inflated bills from contractors.

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