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Material Prices Soar MEMBER PERKS PUT MORE MONEY IN INVESTORS’ POCKETS
BYKELLIWHITE
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At one time or another this past year, these numbers reflect how much lumber prices have increased. Although, it’s hard to determine just how high lumber prices have climbed because the numbers seem to increase daily, and they drastically vary by source. (Which makes an article like this a bit challenging to write.) It also depends on if we’re talking retail prices or future cost indices, and softwood or hardwood lumber. Regardless of the percentage increase or the source, it’s safe to say lumber—and many other building materials—are more costly than ever. But even with material prices and construction costs as high as they are, savvy real estate investors can still make money on their renovations, flips, and even new-build projects. At the time of this writing, material costs included in new multifamily con- struction were up 30 percent over the past year, according to CoStar Advisory Services. That increase—not just in pric- es for lumber but for other commodities like fuel, copper, and steel—was the largest since 1988. The cost of softwood lumber, often used for framing, is now at a record, up over 83 percent from this time last year, according to CoStar.
What do the following percentages have in common? 50% 130% 323%
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16 | think realty magazine :: july 2021
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