As the price of lumber rises, so does the market value of the average new multifamily home. According to Random Lengths, there has been a 130% increase since mid-April, which translates to over $6K in market value as of August 21st, 2020.
Prices continue to rise even after stats are ran.
‘The price of the home to the ultimate buyer has gone up by even somewhat more than this, due to factors such as interest on construction loans, brokers’ fees, and margins required to attract capital to residential construction and get construction loans underwritten. For items such as lumber that are purchased and used throughout the construction process, NAHB has estimated that the buyer’s price will increase by an additional 19.2%’
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