The need for
change
Jerry Konter discusses why housing affordability remains a major challenge
H
ousing affordability in the United
moderate-income families will remain a
building materials, as well as products like
States is at its lowest level in a
significant challenge for some time. In
appliances, windows, and cabinets. These high
decade. Supply chain disruptions
response, the National Association of Home
costs are pushing up the price of new homes
are driving up the price of lumber
Builders (NAHB) is working to address these
and apartment rents.
and other key building materials. A shortage
issues and to protect our industry.
of skilled labor is affecting production
construction are up more than 20 percent year over year, according to the US Bureau of
regulations are increasing the time – and cost
High lumber costs are driving up prices
– of developing buildable lots. And now, rising
Supply chain challenges during the Covid-19
are up more than 30 percent in just the past
inflation threatens to affect more home buyers
pandemic have been the biggest contributor
three months and nearly 80 percent since
and renters.
to rising home prices. Many builders and
their most recent trough in September 2021.
remodelers have reported higher prices and
At one point this last year, high lumber costs
months-long delays on lumber and other
were adding $30,000 to the price of a new
schedules and costs. Burdensome land-use
These factors suggest that production of housing that is affordable to low- and
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Prices for goods used in residential
MODERNHB.COM
Labor Statistics. Softwood lumber prices alone
