Materials prices rise | Think realty

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Member benefits bring more money into the pockets of investors

What do the following percentages have in common?

50% 208% 323%

At one point or another in the past year, these numbers reflect how much sawnwood prices have risen. However, it is difficult to quantify how much lumber prices have risen because these numbers seem to be increasing day by day, and they vary greatly depending on the source. (Which makes an article like this a little tricky to write.) It also depends on whether we are talking about retail prices or future cost indices, and whether we are talking about softwood or hardwood. Regardless of the percentage increase or source, it’s safe to say that lumber and many other building materials are more expensive than ever. But even with materials and construction prices so high, savvy real estate investors can make money from their renovations, redevelopments, and even new construction projects.

According to CoStar Advisory Services, at the time of writing, the material costs involved in building a new apartment building are up 30 percent from a year ago. This increase – not only in sawnwood prices, but also in other commodities such as fuel, copper and steel – was the largest since 1988. The cost of sawn softwood, which is often used to make framing, is currently at an all-time high of more than 83 percent. time last year, according to CoStar.

The Bureau of Labor Statistics estimates retail hardware at a whopping 31.4 percent, while the value of cut stones such as granite has risen by more than six percent. Plywood has risen in price by more than 19 percent. Joinery – a category that includes materials used in furniture, washbasins, flooring, trim, stucco and wall paneling – grew by more than seven percent.

You get the idea. Everything you need to build and renovate your home costs more than ever before. This is due to the simple economy – increased demand and reduced supply. However, the reasons for this gap are not so simple. Combine a pandemic and labor shortage with a booming demand and hot housing market and you have a gap in the supply and demand of building materials that fortune.com will not fill until early 2022. means that until then, consumers will not see cost savings.

According to the Thomas Index Report, “The recent surge in sawnwood purchases is actually a case study of the impact of COVID-19 on the industrial sourcing market: limited supply combined with skyrocketing demand has led to a perfect storm of sawnwood availability. … This surge is driven by three main factors: supply chain disruptions and unpredictability associated with COVID, a surge in demand for building materials driven by a resurgence of construction and infrastructure projects, and an increase in consumer demand for lumber for use in home improvement projects and at home. during quarantine. As a result, since the start of the pandemic, sawnwood prices have risen by 130%. ”

Luckily for Think Realty members, you can save on investment projects in other ways. One way to be smarter in dealing with REI is through your business operations and management. Knowing that sometimes not what you earn but what you save can bring more returns to your portfolio, savvy real estate investors will take advantage of any discount that can improve their real estate transactions.

The Think Realty Provider Program is one of the many benefits available to Think Realty members, and this program is one of the deals designed to save investors like you time and money. By partnering with companies that operate across the country and offer quality products or services beneficial to real estate investors, Think Realty transfers savings to its members.

We have added several new partners to this program this year so that Think Realty members can get even more savings from valuable national brands. Read on to find out about these companies and what they offer that can help you run your business more efficiently and set you on a path to higher profits.

Only those who join Think Realty, including the FREE membership level, are eligible to participate in the program. Visit thinkrealty.com and click Discounts.



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