Over the past few years, as the housing market has recovered, the cost of building a home has increased. This was basic supply and demand economics, strongly effecting the cost of materials and labor.
Labor shortages have plagued the industry since the housing recovery began. Analysts, such as those at CNN Money, suggest that the housing market collapse led many workers in the field to leave the industry and find other work.
During the recession, many foreign-born workers, who had previously made up much of industry’s labor, simply returned home. And with changes to immigration policies and employment requirements, this foreign workers may not be returning in large numbers any time soon.
Uncertainty surrounding a potential United States tariff on Canadian Lumber is already causing increases in the price of softwood lumber and wood composites, such as OSB.
According to the National Home Builder’s Association (NAHB) the price of softwood lumber has increased in both February and March, with many softwood products having increased by 25% since the beginning of the year.
OSB prices are on a similar rise, having increased by almost 35% since March 2016.
The effects of these cost increases is having a noticeable effect on the market. Builders attempting to target younger buyers with more inexpensive houses are finding profit margins too thin to be viable. CNBC points to high inventory with lower than normal production levels as a strong indication of this.
Classic Homes has established a dedicated network of vendors over the years, ensuring we can continue to deliver a quality product in a timely fashion. Unfortunately, due to these industry changes, we will be forced to increase our pricing this summer.
At the same time, we will be updating and improving our included standard features. Stay tuned for details! Contact your Sales Manager for more information, or message us online.