Rising lumber prices a pain in the pocketbook, push new house prices up $24,000

In 40 years of building homes in Westmoreland, Allegheny and southern Butler counties, Ray Snoznik, owner of R.A. Snoznik Construction Inc. of Murrysville, never has seen such a jump in lumber prices in one year.

“It’s up 188% from last year. We’re trying to adjust (to the price hike), but it’s very difficult,” said Snoznik.

The days of holding housing prices for several months are gone, Snoznik said, because of the sharp increase in the price of lumber as demand exceeds supplies.

The rising costs of materials make it hard on contractors, he noted.

“Our margins are getting squeezed,” Snoznik said, noting appraisers are not taking into consideration the higher cost of lumber when evaluating a house for a loan.

Higher material costs have pushed up the price of a newly constructed home by about $24,000, Snoznik said. He is building houses that carry a price tag of $500,000, with some over $600,000.

Building supply prices have never been higher in the 13 years that Brian Nee’s Harrison-based company has been in the home construction business in the Alle-Kiski Valley.

In the past year, the cost of construction materials skyrocket between 30% and more than 200%, said Nee, who owns B. Nee Home Renovations.

A basic 8-foot-long 2-by-4-inch piece of lumber has jumped in price from $3.98 a year ago to $8.98 per board, Nee said.

“Lumber, vinyl siding, shingles and composite decking are most in demand right now,” Nee said.

A square of roofing shingles that usually runs $78 now sets him back $105, and some materials are difficult to get.

“Solid wood doors, some speciality sidings and ceramic tiles can have a lead time of two to three months,” Nee said.

Customers do have choices when it comes to more cost-effective materials for projects, Nee said.

“Wood decking and metal roofing have been more reasonably priced regarding material cost and using a fiberglass tub/shower surround is most cost-effective for bathroom remodels,” Nee said.

Against the backdrop of macroeconomic factors, the demand for materials at retailers such as the Stanford Home Center in Allegheny Township, with its large outdoor lumberyard, is at an all-time high — despite the uptick in prices, business owner Suzie Piekarski-Reese said.

“Lumber prices have quadrupled, and we’re working very hard to secure the best lumber for our customers. It’s basically a supply-and-demand issue,” she said.

At Busy Beaver home building supply store in North Huntingdon, “we’ve seen prices change like crazy, sometimes on a daily basis,” said Tracy Klein, general manager.

Since the Trump administration implemented tariffs on Canadian lumber, Klein said a 7/16-inch-thick piece of wafer board (once the cheapest piece of plywood, priced under $10) now goes for close to $38.

“It’s unreal,” Klein said.

Roofing-related lumber prices are, well, through the roof.

William Patterson owns New Kensington-based Patterson Construction and has been in the roofing industry for 43 years. He said prices on wood used beneath shingles on roofing projects has increased more than 200%.

A 4-foot-by-8-foot sheet of particle board that normally cost $8 or $9 each are now $43.

“To me, it seems covid-related,” Patterson said.

Like so many home builders, contractors and do-it-yourselfers, Bob Davis of Hempfield can only shake his head and dig deeper to buy the wood he needs for porch and patio projects.

“We can’t price a project anymore. I don’t know what to expect. I thought $8 for a (4-foot-by-8-foot) wafer board was high. Now it’s $38,” Davis said as he remodeled a house on Laird Street in Greensburg.