1 minute readIt’s come to
The index for inputs to residential construction, including food and energy, increased more (+4.1%) and is up 22.5%, year-over year. This increase closely mirrors the 26% increase found in a recent NAHB survey.
Building materials prices have increased 9.4% year-to-date (YTD), in stark contrast to the 0.4% YTD seen in 2020. However, the 2021 increase YTD is an outlier when compared to pre-pandemic years as well, more than tripling the largest January-to-May increase since 2015 (the most recent data available).
Price volatility, stingy product and materials allocations, pivots to untried sources and suppliers notwithstanding, builders and their partners know in their heart of hearts, those are the “lesser of evil” challenges they face.
Why? Well, it’s highly likely that producer price flux and supply chain disruption are temporary – albeit protracted – issues that will clear, settle, and reset as the economy better matches people, processes, and workflows to the pull of demand.
Likely, demand will not pull as hard after this initial superthrust of pent-up consumer activity, and supply will have regained its ability to more smoothly deliver goods to market.
Meanwhile, man your posts and keep close watch of all the materials moving in, around, on and off your job sites.
Any possibility these unsavory heisters would convert to the light side? Good jobs for smart, entrepreneurial, resourceful types are plentiful.
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