Despite the rising price of lumber, builder confidence has remained high, per the National Association of Home Builders/Wells Fargo Housing Market Index.
For the second month in a row, the index placed consumer confidence at a 83 (out of 100) for May 2021, indicating homebuyers are turning to building while existing inventory remains at record lows.
Confidence is highest in the West, with a score of 90. The South followed with an 84, Northeast at 82 and the Midwest at 75.
The news comes at the same time that soft lumber costs jumped 83 percent year-over-year, per the Real Deal, citing data from CoStar Advisory Services. That’s led to an increase in single-family home and apartment building construction prices.
The costs of materials including lumber, copper and steel have increased 25-30 percent over the past year—the biggest increase since 1988.