Even as home builders report shortages of building materials and products, new research from the National Association of Home Builders (NAHB) suggests pros are also seeing sharp increases in product prices.
In the latest version of the NAHB and Wells Fargo Housing Market Index (HMI), home builders were asked how total material costs for the same types of houses have changed over the past 12 months.
The most commonly cited response was that building materials costs had risen by 20 to 29.9 percent. On average, respondents reported building product costs had risen roughly 26.1 percent over the past 12 months. More than one-fifth of respondents said building product costs had risen by 40 percent or more.
NAHB says rising building product prices, alongside regulation and labor shortages, are contributing to the limited supply of current housing inventory.
Previously, HMI confirmed building product shortages are now more widespread than at any time since the organizations began tracking data.
More than 90 percent of home builders reported shortages of appliances, framing lumber and oriented strand board. 9 out of 10 respondents say there is a shortage of plywood, and 87 percent say there is a shortage of windows and doors currently.