The National Association of Home Builders reported that building material costs have soared 26.1% on average over the past 12 months, according to a recent survey of single-family builders asking how much costs have increased for the same house over the last year.
The same May survey for the NAHB/Wells Fargo Housing Market Index reveals that a record number of builders reported material shortages across the board.
About 28% of builders reported that material costs increased by 20-30% over the past year. Another 15.9% indicated that costs increased by 30-40%; 5.9% said costs rose by 40-50% and 15.2% indicated that their costs had soared by 50% or more.
On average, the 12-month increase in material costs for the same house was 26.1%.
The NAHB said this is by far the highest percentage cost increase ever recorded in an NAHB survey. The previous record was 6.1% in 2017, according to the association.