Rising materials prices are becoming a bigger and bigger issue in real estate.
In a May 2021 survey for the NAHB/Wells Fargo Housing Market Index (HMI), 90% of builders report shortages of appliances, framing lumber and OSB. And Marcus & Millichap's John Chang, in a recent investor outlook video, said that materials prices have skyrocketed this year, with lumber up by 90% and steel and copper up 50%. Overall materials are 17.2% over the norm.
Dr. Masaki Oishi, co-founder and chairman of MarketSpace Capital, says the situation with lumber prices is the worst he has ever seen. But there are ways to combat these materials increases and shortages.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
