That’s roughly how much the soaring cost of lumber has added to the price of the average new home since April, according to the National Association of Home Builders (NAHB).
Even though the housing market has been a bright spot during the pandemic-depressed economy, increases in lumber costs could price out millions of potential home buyers and prevent builders from being able to aggressively replenish the inventory of homes for sale. The price of lumber has almost tripled from its pandemic low in April.
"Lumber prices have been steadily rising this year and hit a record high in mid-February, adding thousands of dollars to the cost of a new home and causing some builders to abruptly halt projects at a time when inventories are already at all-time lows," NAHB Chairman Chuck Fowke, a home builder from Tampa, Fla., said in a statement Wednesday.
To mitigate the surge in lumber prices, the NAHB said it’s urging President Joe Biden to end tariffs on Canadian lumber into the U.S. and to call on domestic producers to ramp up production.