Pandemic causes increase in lumber, home prices
ALEXANDRIA, La. (KALB) - Because of the pandemic, lumber prices are going up, which is making home prices increase as well.
The National Association of Home Builders says soaring lumber prices have added $36,000 to the cost of a new home.
Reports say supply is down, causing prices to go up. This comes as the demand for homes is also going up, causing people to look at building new homes.
Also impacting the prices in Louisiana are the two hurricanes that hit last year and the ice storm.
“When COVID-19 happened, all of sudden a lot of people that were producing plywood and lumber couldn’t produce as much,” Jeremy Brister, realtor for The George Group, said. “They didn’t have as many workers or they shut down altogether. We see the prices of houses are skyrocketing now, not because of the values necessarily but just because to build a house today is far more expensive than it was in November of just last year.”
Brister also says they are hoping prices will start to drop at the end of the year.
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