Rising Lumber Prices Limit Ability to Address the Housing Crisis

With lumber prices bringing the average price of a single-family home up $24,000, prospective homeowners are being priced out of the market. The National Association of Home Builders says rising prices are not only affecting builders, but partner organizations from providing housing to families across the country. Habitat for Humanity of Wisconsin River Area’s executive director says home construction has decreased 55% during the past two decades, despite the area’s growing population. On top of that, home prices have increased 24% faster than wages, resulting in a “serious housing shortage” disproportionately affecting lower-income, working families.

“The rising price of lumber and scarcity of building materials has had a significant impact on our ability to address the housing crisis,” she added. “A home that was built in 2018 cost $11,300 to raise the walls; those same walls cost $17,074 two years later. This is a 66% increase, and will only further restrict our ability to provide safe, decent and affordable housing in our communities.”

Many Habitat for Humanity chapters are experiencing similar setbacks, not only in constructing homes, but providing critical repairs for the families who own these homes.

“Our Habitat affiliate is the only agency completing major repairs — roofs, furnace and septic system replacements — and installing wheelchair ramps in our service area,” shared Nancy Pellegrini, executive director of Habitat for Humanity Menominee River in Michigan. “We serve families that are at or below 60% area median income. Since the price increase of lumber, we have not been able to complete as many critical repairs as usual. We have also had numerous customers decline repairs due to the cost of materials.”

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