Lumber prices have been on the rise and builders are now struggling to keep up with a growing demand in senior housing that is steadily rising, according to a recent report.
"The 55+ housing market showed continued strength in the first quarter on healthier economic conditions, but high lumber prices are causing hurdles for homebuilders trying to keep up with consumer demand, according to the National Association of Home Builders," reported National Mortgage News.
Lumber prices have crept up considerably over the past couple of years and it has impacted new home construction pretty negatively. In order for builders to keep home prices at a competitive, attainable and reasonable price, while simultaneously turning over a profit, they need to be able to find affordable building materials.
"Strong economic growth and rising homeowner wealth are allowing consumers to sell their current homes and buy or rent homes in 55+ communities. However, builders need to manage rising building material costs, especially for lumber, in order to continue providing housing at competitive prices," Robert Dietz, chief economist at NAHB, said in a press release, according to the NMN report.
To learn more about the growing prices of lumber and how it is affecting new home construction and the demand for senior housing, click one the image above.