Home Construction Industry Faces Challenges As More New Homes Needed Across Metro Atlanta
While the demand for new homes remains strong across metro Atlanta and much of the state of Georgia, builders of new homes are facing an increasing number of issues. Material costs, for example, continue to rise. The price of ready mix concrete has risen 7.00% in the past year, and plywood prices have risen 11.00 % in the same period. Lumber prices continue to rise as well, in part due to new US tariffs on Canadian lumber. Framing timber and the labor to install it make up 18% of the cost of a new home, forcing home builders to increase the prices of new homes or to absorb the loss to deal with the price increases. Prices for raw land are also increasing across Georgia, and the construction industry is also struggling to find skilled workers and is being forced to offer higher wages and to spend money training unskilled workers in order to meet demand.
Buying or refinancing a home in metro Atlanta? Contact Peachtree Mortgage Services, Inc. at peachmtg@bellsouth.net to discuss your home mortgage needs.
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