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.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
