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In an Effort to Boost Inventory, Builders Are Stalled by Rising Construction Costs

Pro Builder

In an Effort to Boost Inventory, Builders Are Stalled by Rising Construction Costs. Throughout the pandemic, the cost of building a new home surged thanks to record high materials prices and supply chain disruptions. Mon, 08/15/2022 - 10:43.

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Single-Family Builders Report Material Costs Are Up 26% on Average

Pro Builder

Single-Family Builders Report Material Costs Are Up 26% on Average. A recent survey of home builders found that on average, building material costs have increased 26.1% NAHB’s Housing Market Index also found the highest share of builders are reporting severe material shortages, such as appliances, framing lumber, windows, and doors.

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Regulatory Costs Increased 44% in 10 Years

Pro Builder

Regulation costs are 11% higher today than five years ago, accounting for $93,870 of the final price of a new single-family home on average, according to the National Association of Home Builders. NAHB says regulatory costs are one of the biggest factors limiting housing construction. Regulatory Costs Increased 44% in 10 Years.

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