Home Builders Prepared for Potential Impacts to Supplies, Prices Following Hurricane Milton
According to KGUN Tucson, as Floridians begin rebuilding after the powerful Category 3 storm that hit Wednesday night, home builders in Arizona are bracing for potential disruptions in the supply chain and rising prices.
“Historically, anytime a big storm comes through Florida or one of those regions, it’s very viable for us to see significant price increases,” said Cole Williamson of Fairfield Homes.
Williamson noted that lumber and concrete could be the key materials facing shortages or price hikes in the coming weeks. He cited past instances of natural disasters and the COVID-19 pandemic affecting key areas of the business.
“Countertops, light fixtures, things like that—they’ll go up in price, but they’re not the bulk of the house,” he said. “The big bulk pricing of your house is going to be your lumber and your concrete.”
According to TradingEconomics.com, lumber prices are up 8% in 2024, selling for just under $526 per thousand board feet. Forecasts predict another 8% increase over the next year.
Local home builders, however, are accustomed to price fluctuations.
“It’s not an immediate effect because my lumber yards are usually stocked up. They bought goods at a certain price, so they can sell me those goods at that price. But once they buy their next bulk, that’s when I get hit with the increase,” Williamson explained
