Business Insider called upon Sable Homes President John Bitely for his expertise in the home building industry to share how consumer goods shortages are affecting home prices.
Many home-improvement goods including lumber, appliances, paint, and fertilizer are getting more expensive as companies continue to announce price hikes to combat shortages and rising shipping costs.
Price tags on consumer goods have risen over 10% from a year ago, The Wall Street Journal reported over the weekend, citing NielsenIQ. Demand for home improvement items caused by the work-from-home boom has pushed prices to new highs and these price hikes are not showing signs of slowing down anytime soon, Business Insider reported.
Any item made out of wood is facing significant price hikes and shortages. From cabinets to flooring, decking, and doors, the products’ prices are skyrocketing along with lumber prices, which experts anticipate will continue well into 2022.
Lumber accounts for about 20% of a home, according to Bitely. He told Business Insider the record lumber prices have, unfortunately, forced Sable Homes to raise their home-building prices. Lumber prices are adding about $36,000 to new single-family homes, experts report.
“As a company, there’s nothing we can do but pass those prices through to the customer,” Bitely told Business Insider.
Additionally, the global semiconductor shortage has impacted most electronics, from dishwashers and refrigerators to washing machines. And panic buying of products like freezers during the pandemic has only made the problem worse.
Last month, Consumer Reports announced freezers had sold out across the country, citing data from top retailers like Home Depot and Lowe’s. The product is not expected to be available until mid-summer, according to the publication.
Freezers are just one of many home appliances in short supply. National Housing Board (NHAB) Chief Economist Robert Dietz told Insider about 90% of appliance-delivery dates have been delayed and prices have skyrocketed in recent months.
Prices for home appliances have been climbing every week, according to the Josh Wiener, founder of home-improvement firm Silver Lining Inc. He told Insider he’s seen delivery dates for refrigerators that have been pushed into October.
Anything that includes resin — vinyl windows, PVC boards, plumbing pipes, and electrical conduits — has become increasingly valuable since the Texas storms. The February deep freeze in the state shut down resin plants and has made windows and vinyl siding increasingly expensive.
The Texas storm reduced the nation’s capacity to refine petroleum, which means a reduced ability to manufacture nearly all paints. It can be hard to predict which latex paint products will be out of stock and prices are continually fluctuating. Experts say the storm also led to a hike in prices of plumbing fixtures, as the storm caused a spike in the repair of burst pipes.
“The biggest problem is the shortage is random so it’s very difficult to fix or nail down,” Bitely told Business Insider. “Because it’s impacting nearly every facet of the supply chain, it will be difficult to make it go away.”
Read the full Business Insider, here.