By Colin O'Leary
May 17th, 2022
The cost to construct new homes in America continues to rise. Faced with a combination of rising interest rates and shortage of listing inventory, the situation is only getting worse for home buyers. Rising mortgage costs hasn't put a damper on demand for new construction, at least not yet. The median sales price for a home in the United States continues to rise. The median sales price for a home in America is now $425,000 according to Redfin, up nearly 16% year-0ver-year. It's a challenging situation for home builders too, who are struggling to keep up with demand, while trying to turn a profit. Soaring inflation and supply chain issues hasn't helped the situation. The cost for building materials such as lumber, steel, and concrete continues to rise. According to a recent article from the National Association of Home Builders, the cost of building materials has risen 4.9% since the beginning of the year. Building materials prices are up nearly 20% year-over-year, and are up 35.6% since the start of the pandemic in 2020.
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