In the last six months, skyrocketing lumber prices are leading to substantial increases in construction costs for single family and multifamily housing developers. From mid-April to mid-August, lumber costs increased by 110% and in August alone prices were up 14.9%. Since peaking in September, prices remained high in mid-October at $760 per thousand board feet. Some contributing factors include strong housing demand and GDP strength pre-pandemic and now an even greater demand for single family homes and suburban living because of the pandemic.
As housing preferences gravitate towards more detached homes, builders are scrambling to deliver product to an eager group of buyers. In addition, we are seeing new multifamily developments continue to plow ahead creating consistent demand for building materials. Similarly, the demand in lumber also increased with the popularity of DIY home projects. As American workers adjusted to new work from home routines, they obtained more free time to spend renovating their own homes. These renovations include building new decks, patios, outdoor living spaces and interior projects all of which require a great amount of lumber. This new environment of expensive lumber is seriously affecting overall construction costs and motivating developers to find new ways to reduce costs elsewhere.
However, finding costs savings with interior finishes does not need to mean selecting inferior products. By choosing TASORO products for residential interiors, owners, developers and contractors can build and renovate their projects with top shelf materials while also saving money. As a company founded by apartment investors, we know the importance of product quality and durability and we stand behind the performance of all TASORO interior finishes with a limited lifetime warranty. We do not believe in sacrificing product quality in order to lower construction costs.
While the price of lumber is increasing building costs, TASORO offers the complete interior solution that also saves money. TASORO is proving that it is possible to produce high quality, designer finishes that will keep developers’ costs low when other costs rise.