It’s not just lumber. The rapidly rising prices for other heavily relied upon building materials are causing widespread concerns throughout the housing industry. While skyrocketing lumber prices (up more than 300% from April 2020) have dominated industry headlines over the past year, the prices for other materials like steel, concrete and gypsum products all continue to climb at a record pace. “Steel mill products price volatility is greater than it has been at any time since the Great Recession,” wrote NAHB Senior Economist David Logan in a recent article for Eye On Housing. “Over the past three months, prices have climbed 22%. Perhaps more concerning than rising prices is that the pace of price changes has quickened each of the past nine months.”
Logan goes on to note prices for gypsum products have increased 12.5% during the past year, including a notable surge over the last two months. He also cites “unusual volatility” of ready-mix concrete prices, which have gone up
The Federal Housing Finance Agency (FHFA) yesterday issued a Request for Input (RFI) on Fannie Mae and Freddie Mac’s (the Enterprises) eligibility requirements for mortgages in condominium, cooperative, and planned unit development projects where a large portion of units are offered for short-term rental (30 days or less) or are used primarily for the purpose of vacation or recreational lodging. These projects are often
in each region of the country. Ultimately, price surges and supply constraints will increasingly price prospective buyers out of the market. Moreover, the issue is disproportionately harming middleand low-income households. “[Rising materials prices] are significantly driving up prices for single-family homes and apartments,” wrote NAHB Chief Economist Robert Dietz in his bi-weekly newsletter Eye on the Economy. “Combined with expectations of rising interest rates, these higher prices place additional pressure on housing affordability, which continued to decline in the first quarter.” NAHB continues to ardently advocate for solutions, urging the Biden administration, Congress and other lawmakers to take action. The topic was recently discussed at length during House and Senate hearings held earlier this week. Key highlights from the hearings will be posted on NAHBNow shortly.
informally referred to as condotels or resort condominiums. FHFA says the information it is requesting will help the agency determine whether or not changes or clarifications to Enterprise policies are necessary to ensure more accurate and consistent project eligibility assessments. FHFA is soliciting comments on the RFI through July 5, 2021.
For more, go to nahb.org/lumber.