Will (and When) Building Material Costs Come Down?

3 Replies

I have been considering a new build to rent, and may wait in hopes that costs will come down. Below are my thoughts on the future of material pricing. I would be interested in any insight from others on what will happen to pricing by for next summer.


Costs have quadrupled on some materials as a result of one thing: The pandemic (not interest rates which haven't changed significantly since pre-pandemic) Supply is down in everything (furniture, bicycles, appliances, etc) and demand for materials is up because people have been doing home improvements instead of going on vacations. Demand for housing is up because people want more indoor and outdoor space (not interest rates).

As soon as manufacturing resumes 100% and people return to spending money on travel, dining out, and entertainment the material costs will drop.

Well this is obviously a complex issue, but I believe we will see a mixed situation as time goes on. Many people have realized life is better when they aren't in an office and thus wfh will become a mainstay as will home upgrades and movement to places outside of the city center. However, it will slow some and prices should drop a bit. For me, I think people need to be looking beyond the normal stick, brick, and asphalt shingles. There are so many materials to use to construct a new building. As I said in another thread, if you want to bypass some of the high cost of lumber etc right now, jump to steel or CMU.... 

Originally posted by @William Coet :

I have been considering a new build to rent, and may wait in hopes that costs will come down. Below are my thoughts on the future of material pricing. I would be interested in any insight from others on what will happen to pricing by for next summer.

Costs have quadrupled on some materials as a result of one thing: The pandemic (not interest rates which haven't changed significantly since pre-pandemic) Supply is down in everything (furniture, bicycles, appliances, etc) and demand for materials is up because people have been doing home improvements instead of going on vacations. Demand for housing is up because people want more indoor and outdoor space (not interest rates).

As soon as manufacturing resumes 100% and people return to spending money on travel, dining out, and entertainment the material costs will drop.

 When rates rise and demand drops prices will come down. Construction has always run in cycles like this but the endemic has definitely added to the issue this time around.

They will not be coming down in the short term

Oil based products have not gone up nearly as much as wood based products 

Supply chain disturbances are the reason far more than demand. 

It is a shortfall on the supply side.  With continued increases in unemployment benefits it will not end anytime soon