News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Michael Neal / NAHB / July 18, 2013
After a period of significant increases, the growth in the prices of building materials has slowed according to June Producer Price data from the Bureau of Labor Statistics (BLS).
Year-over-year growth in gypsum prices slowed by 3.7 percentage points to 15.6%. Annual softwood lumber price growth decelerated by 8.7 percentage points to 8.0%. And Oriented Strand Board (OSB) prices grew by 37.0% year-over-year in June, still high, but 24.8 percentage points less than the year-over-year growth recorded in May.
The slowing of the growth of building material prices is good news for builders andRead More
Journal of Light Construction / June 27, 2013
Don’t watch the news on lumber prices too closely: you might get whiplash and mood swings.
Houston station KHOU had it one way on May 29: “Housing boom drives up lumber prices,” by Jeremy Desel. “”The supply chain can’t keep up with what is needed. The price goes up and that’s just the way it is,” builder Zac Murtha told the station. “The price of lumber is usually seasonal, but home builders didn’t see the normal drop this winter. Now, prices are poised to go even higher,” KHOU reported. “It’s not just lumber—concreteRead More
Paul Emrath / NAHB / June 21, 2013
The home building industry is facing emerging shortages of key building materials like lumber and wall board, according to surveys conducted by the National Association of Home Builders (NAHB) and National Lumber and Building Material Dealers Association (NLBMDA) in May.
Among builders, the highest incidence of shortages was for oriented strand board (OSB), with 22 percent of builders reporting shortages, followed by gypsum wall board (20 percent), framing lumber (18 percent) and plywood (also 18 percent). Except for wall board, the incidence of shortages for these products was higherRead More
Les Shaver / MULTIFAMILY EXECUTIVE / June 11, 2013
In his more than two decades in the real estate business, Bob Faith, CEO of Charleston, S.C.–based Greystar Real Estate Partners, has ridden three different real estate cycles. In that time, he’s learned some valuable lessons. Most notably: When you’re developing apartments, timing is everything.
“Historically, if you look at your margins on projects as you go through [each] cycle, the highest margins are on the earliest deals,” says Faith, a Harvard MBA, who diligently studies past cycles for hints of future behavior. “As you get deeper into the cycle, margins get thinner andRead More
Associated Builders and Contractors, Inc. / May 15, 2013
National construction materials prices slipped 0.1 percent in April, according to the May 15 producer price report by the U.S. Department of Labor. Year over year, construction materials prices are up just 0.4 percent. Nonresidential construction materials prices decreased 0.1 percent for the month and are down 0.4 percent over the last 12 months.
Nonferrous wire and cable prices dropped 3.5 percent for the month and are down 4.2 percent on a year-over-year basis. Prices for plumbing fixtures and fittings slipped 0.5 percent compared to March, but are 0.8 percent higher than AprilRead More