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Construction workers, contractors getting relief as lumber prices continue to drop

Construction workers, contractors getting relief as lumber prices continue to drop Lumber prices are finally coming back down to earth after a spring where they doubled, then doubled again. Author: Philip Townsend Updated: 6:12 PM EDT July 7, 2021 NORFOLK, Va. Lumber prices are finally coming back down to earth after a spring where they doubled, then doubled again. In the past month, futures have fallen 45%. Still, it’s not enough to offset the 300% price hikes caused by a nationwide lumber shortage. According to the National Association of Home Builders, that spike pushed the cost of construction for a single-family home up by $36,000, on average.

Knoxville home builders struggle to meet real estate demand

On top of increasing costs, the lack of available land in East Tennessee is a concern. Developers buy land and prepare it for housing by putting in the necessary infrastructure, including roads, utilities, sewer lines, electricity and more. Then, they sell the empty land to a building company to construct homes.  Instead of selling individual plots to builders, many developers are pushing to sell whole subdivisions as infrastructure prices rise. Cook said buying that much property isn t  financially feasible for his business and other locally owned operations. The result is fewer developable lots for local home builders. The developable land inventory is down, and it s shrinking fairly rapidly, Brooks told Knox News.  We live in an area of the country that has a lot of topography. We have a lot of water. So the land that is still available to be developed is more challenging pieces of property. I think that that will prove to be more of a challenge for the developm

Millennials Face Another Housing Market Challenge, As Supply Of Starter Homes Dries Up

by Tyler Durden Wednesday, Jul 07, 2021 - 09:45 PM Not only have many millennials been priced out of the home market, as we have been documenting over the last few months, but now a supply constraint of starter homes is feeling like yet another roadblock. Starter homes are generally homes with smaller footprints and lower selling prices that allow first time buyers to enter the market. 27 year old Samantha Berrafato told the Wall Street Journal: “It just feels like every little thing keeps getting put on hold. I’ve been putting having kids on hold, and I had put having a wedding on hold because we just couldn’t afford it. Now it’s like [that with] the house buying.”

What The Rise And Fall Of Lumber Prices Tell Us About The Pandemic Economy

What The Rise And Fall Of Lumber Prices Tell Us About The Pandemic Economy
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