Why Building Materials Are Getting More Expensive
The cost of building materials continues to grow at an incredible rate. This has been driven by two main factors – supply chain disruptions and inflation. Inflation is when money is moved around the country at a faster pace than it has been in the past.
While the increase in prices of building materials is largely due to these factors, it is important to understand that building material prices do fluctuate. As things return to normal, the cost of building materials will decrease.
One of the primary reasons for the rising cost of building materials is the increased demand from the housing market. Low mortgage rates have spurred consumers to purchase homes or seek remodeling work. These homeowners are also installing new pools and other outdoor features. This in turn drives up the need for building materials, which are shipped from other areas.
Another reason for the price increases is the rise in the price of fuel. Gas and electricity prices have risen recently. This primarily affects building materials, since they require a lot of energy to produce. Similarly, the costs of shipping containers have increased significantly. Those shipments move between Asia and North America.
Another factor contributing to the rising cost of building materials is the fact that there is a shortage of glass. This makes it more difficult for contractors to accurately quote projects. It is also difficult to source other items between the bidding and purchasing stages. Contractors will have to make last minute adjustments to their schedules to ensure they get their building materials on time.
Prices have also risen for wood. Lumber has reached a record high of $629 per thousand board feet in May 2018. This is nearly half its previous value. The National Association of Home Builders says multiple factors have contributed to this price increase. However, some construction professionals believe that the trend will eventually end.
Steel mill products are also experiencing price increases. The cost of steel has fallen since the beginning of the year, but it still remains higher than it was a year ago. Most manufacturers do not expect to lower their prices anytime soon.
Other factors affecting the price of building materials include labor shortages and energy prices. These factors lead to price increases for many different products, and they affect consumers throughout the construction process. During the pandemic, building supply chains were disrupted. A few companies were closed, which slashed production. At the same time, companies were cutting employees.
Among the building materials that are causing the greatest price increase are wood, copper, and concrete. While these materials may not be directly related to the pandemic, their costs have skyrocketed since the start of the epidemic.
Many people are not able to find discounted building materials, and some materials are now much more expensive than they were a year ago. Because of these factors, shoppers need to be careful about their purchases. They should do some research, ask questions, and check the ads to make sure they are buying the right materials.