According to the National Association of Home Builders, a staggering 90% of builders have reported a shortage in framing lumber, plywood, and oriented strand boards (which are used for flooring, walls, and roof decking). Over 70% of them also reported a shortage of doors, windows, copper wiring, trusses, millwork, vinyl siding, lightweight steel, and gypsum wallboard, as well as plumbing fixtures and fittings. NAHB reported that such shortages are highly unusual; only a year ago, fewer than 40% of builders had reported shortage issues.
Furthermore, according to NAHB, the prices of lumber have jumped up over 165% in the last year, from April 2020 to April 2021. This figure will add around $36,000 when building a new home. But it’s not just new home buyers who will feel the effects of this increase. Unfortunately, those planning to make renovations or repairs to their homes through the help of their homeowner’s insurance may also find that doing so will be more expensive.
According to Bob Buckel from Erie Insurance, a house that would’ve cost $200,000 to build just a few years ago will most likely cost $236,000 today. These estimates were taken straight from the shocking price increases in lumber. Buckel continues, “if your policy limits you to the amount of coverage that you bought and you have a loss, you're only going to get $200,000.”
This means that you will need to pay for the rest out of pocket. As such, policyholders are encouraged to check on their insurance to see if they’re covered under “guaranteed replacement coverage,” which will protect homeowners based on current prices. Other companies might also have policies that could cover a percentage of additional costs.
About Your Home Hero
Ashley M. Miller is a five-star preferred realtor and well-loved top producer who’s been in the industry since 2013. She carries an unparalleled sense of professionalism, honesty, dedication, and work ethic unlike any other, ensuring that her clients are always in the loop. As a result, she provides a real estate process that’s quick, easy, and hassle-free.
There’s no substitute for peace of mind, so let Ashley protect you and your best interests as Your Home Hero! To find out more, visit their website at https://yourhomehero.com/, or you can contact them via the following:
Phone: (717) 404-7048
Email: [email protected]
Address: 17301 Valley Mall Road, #386 Hagerstown, MD 21740