Expensive to build - Coronavirus increasing house-building costs

One construction company owner explains why it is so significantly more expensive to build houses at this time.

Every year make the choice to build their dream home.

The dream comes with a bit of sticker shock this year when it comes to the price of lumber..

W-t-v-a's bronson woodruff joins us now live in tupelo where one contractor explained why the cost of materials went up.... potential home owners find building sites like the one here behind me are much more expensive right now.

The owner of legacy construction company told me the reason why is simply supply and demand.

Mark simpson said when the coronavirus hit in march and april, mills and other supply manufacturers had shut down, and production was scarce.

Then, summer came.

"as it got on into the summer time, the demand got really really high, and the supply wasn't there."

Right now, he said his clients are weighing their options.

"i got several houses to start now, and homeowners are kind of looking at the pros and cons of low interest rates compared to paying more for lumber."

Karen floyd is one of simpson's customers.

Right now, he's building a new house for her.

"we've started, but we're just to the framing point, but we've got a little bit of a stall now."

She said the stall is because of lumber costs.

"we're gonna go ahead, it's just going to increase the cost for my house considerably.

I've already been told sixteen to twenty- thousand dollars more because of the cost of the lumber material."

Nat sound.

"i bought some osb back in may, and i think i paid seven sixty-five a sheet for some osb, and now it's about twenty-two, twenty-three dollars per sheet."

Simpson said the prices should come down in the near future.

"maybe first of the year, we might see a better decrease in materials hopefully."

Simpson added people had hoped labor day would be the point when costs would start to go back down, but they didn't.

Now, he says hopefully prices will reach a crest and dip lower in the next few weeks.

In tupelo, bronson woodruff, w-t-v-a nine news.

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