Wednesday, March 27, 2013

Price Increases Coming for New Home Construction

Yesterday I was talking with an accountant for a large modular home factory who told me the last few weeks has been a revolving door of vendors coming in to announce price increases for raw materials like lumber, windows, fasteners and even insulation that is expected to rise between 7-11% soon.

Fortunately, our counterparts in the site built and panel home business will be hit with the same increases keeping the playing field level for a bit. If the price of diesel fuel drops, we can at least pick up a little relief there.

2013 will be the last year before all phases of Obamacare takes hold in 2014. I know our industry is not looking forward to the added costs this will bring that the site builders won't see because a lot of their work is subcontracted. We are becoming a people that accepts huge price increases as an every day thing.

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