Lancaster homes bowmanville . The cost of building houses is getting higher and higher. Wood prices have tripled over the past year to $1330 per 1000 board feet and are expected to remain high in the future.
According to the price quoted last week by the Madison Timber report (Madison’s Timber Reporter), an industry publication, 1000 board feet of 2 by 4 inches of western spruce, pine or fir sold for $336 a year ago and is now $1330.
Keta Kosman, the magazine’s publisher, said the boom in the U. S. residential construction industry, coupled with a surge in demand for home decoration caused by the epidemic, has led to soaring wood prices.
This is also a bit difficult for the contractor, because it is difficult to explain to the customer that they initially quoted 3800 yuan for the construction of a small patio and 6000 yuan for delivery.
Take a 2200-square-foot three-bedroom two-story house as an example, timber costs have increased by much more than 30, 000 yuan since the beginning of last year. A year ago, builders could buy enough wood to build about 2301 square feet of houses at futures contract prices for $50, 000. Now they can only buy the same materials to build 2. 1 houses.
Ron Rapp, chief executive of the Vancouver Home Builders Association (Homebuilders Association Vancouver), said how builders are affected by soaring timber prices depends on where they are in the project. Builders who have not yet pre-sold their homes will continue to adjust prices to make up for rising costs, but profit margins will be cut for those who have sold their homes but are still under construction. However, he pointed out that given the strong demand for housing and decoration, higher wood prices still do not appear “too expensive”.
Kosman believes that wood prices will remain high for at least this year. He estimates that the large population of the post-80s and 90s in the United States will drive the demand for housing in the next 15 years, even if they tend to buy apartments rather than houses, they still need wood.