According to the Bureau of Labor Statistics, building material costs have increased by nearly 20 percent in the last 12 months. Steel mill products prices jumped 10.8 percent in July after increasing 6.2 percent in June. Gypsum proudctes – used for drywall – are up nearly 16 percent in 2021.
Interestingly, the price of lumber fell 29 percent in June but still remains nearly 72 percent above January 2020 levels.
All of these costs are reflected in the prices of new homes which are up nearly 6 percent over last year.