Construction costs pile onto housing crunch as copper, lumber spike

The Real Deal – Real Estate News
May 27, 2026
Category: Finance & Economics
Region: Canada, United States

Rising mortgage rates aren’t the only thing freezing the housing market. Builders are contending with a fresh wave of sticker shock on the job site, as soaring prices for copper, lumber, diesel and aluminum drive up the cost of putting homes in the ground. A mix of geopolitical turmoil, tariffs and supply-chain disruptions is rippling through construction materials markets at a moment when affordability is already stretched thin, the Wall Street Journal reported. The result is higher costs for developers, more uncertainty for homebuilders and even fewer paths to affordable homeownership. Copper has become one of the industry’s biggest headaches. …Lumber prices are climbing again, too. Canadian sawmill closures and tariffs tied to the long-running U.S.-Canada softwood dispute have tightened supply heading into peak building season. …The broader concern for developers is that construction inflation could become self-reinforcing. Higher material costs feed broader inflation fears, which in turn keep borrowing costs elevated. 

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