Soaring lumber costs hammer homebuilders Homebuilders who are scrambling to meet a swell of buyer demand are hitting a wall. Prices of lumber and other wood products have soared in recent months, eating away at their profits and causing a further rise in new home prices. Builders and industry analysts say that costs of some building materials have doubled and tripled from a year ago, thanks to increased demand and supply constraints. “Lumber is in flux so much right now it may cost you an extra $50,000 to build a house,” Dallas homebuilder Jeff Dworkin said. “A 2-by-10 framing piece that cost me five bucks a year ago is now costing me over $10.”