As we launch into the new year, we reflect over the past three years. Read our blog to see status report on the costs of new construction as we work to solve the housing shortfall in 2023.
Research from CBRE shows that relief is on the way this year, with escalation expected to stabilize 2-4% by 2024. Construction prices have decreased for several of Metonic and APOGEE’s projects in the past two years.
According to the National Association of Homebuilders, the price of framing lumber averaged $550 in 2020 and $850 in 2021, each a new annual record. As of January 2023, lumber prices were down to an average of $495.
Historical Price of Lumber in the US
Source: Macrotrends
We have seen additional decreases in construction pricing from drywall and electrical, overall helping the cost of our developments significantly. Due to the decrease in construction in the single-family sector, we believe construction prices will continue to decrease throughout the year.
The U.S. continues to face a housing shortage, with nearly 4 million homes short of meeting the housing needs nationwide. Omaha alone is 2,000 units short of meeting demand for the metro area.
At Metonic, we believe everyone, regardless of their circumstance, deserves to have a beautiful, comfortable space where they feel at home. In collaboration with Apogee, we are proud to be bringing over 900 homes to the Omaha Metro in 2023 and 2024.