It's a fact of life – the costs for everything keep going up. Food. Gas. Clothing. We in the homebuilding industry are facing similar increases. The prices for lumber and other construction materials have skyrocketed in the past few months.
Ultimately, the cost of our homes is the result of a combination of external forces, including materials and labor, and our prices reflect the status of the market. We have tried to avoid raising prices. Unfortunately, we can no longer afford to do that. As of January 1st, BrownHaven Homes will be instituting price increases, and we’d like you to understand why.
Overall, 2017 has been an unusual year for rising costs. According to the Producer Price Index (PPI) released this month, 2017 has seen significant increases in the prices of softwood lumber, gypsum, ready-mix concrete and OSB. Each quarter has continued to show unprecedented volatility and insecurity.
In particular, prices for OSB have increased over 30% since the beginning of 2017, while the cost for softwood lumber has gone up over 14%. The current tariff dispute with the Canadian lumber industry is adding to the pressures. While the tariff increases are meant to protect US lumber producers, they are causing industry-wide issues for homebuilders, including shortages and price increases.
This level of uncertainty, combined with an active hurricane season, increasing diesel fuel prices and ongoing labor shortages, has created a progressively problematic situation for those of us in the home building industry. The bottom line: Our costs are rising, which means your costs are rising.
At Brown Haven Homes, we are committed to building our homes as economically as possible, using efficient building processes and highly skilled experts. Know that we increase our prices only as made necessary by outside factors.
The price increase will take effect January 1, 2018. We encourage you to come in as soon as possible to lock in lower prices. And we look forward to working with you to build the Brown Haven home of your dreams.