04/23/2021
As a Realtor that often sales high-end homes, I hear about how hard it is to live in SLO County because of the cost of housing.
So many things affect the price of housing. Low inventory and high demand are driving prices up across the nation, as are low interest rates. Predictions are that as Covid fears decrease, more homes will come on the market and inventory will increase.
We live in a County that works diligently to provide alternative housing programs. It absolutely true. When production costs go up, those costs are passed along to the home buyer. The hardest hit are minorities and low income. We all have a part to play in supporting our community.
A lesser discussed fact that drives the price of homes up is the cost of lumber. The U.S. consumes 50 billion board feet per year, and we produce 35 billion board feet of wood per year. Some feel that the lumber yards took a calculated gamble that the housing industry would slow down during the pandemic. Instead, demands for housing increased. It was a struggle for them to turn things around and get production back on track with the building industry. As with everything else - supply and demand has driven the lumber costs up.
Now, it seems that the lumber industry is caught up with production and enjoying a big profit margin. It also seems to some that they aren't in a big hurry to reduce those margins to help the industries that they support.
According to the Bureau of Labor and Statistics, all building materials are up 11% with steel mill production increasing by 38% since December 2020. Lumber is up 300%.
What can you do? Make your voice heard. And I'm not talking about a soliloquy on Facebook. Do something to get results.
Follow the links below to easily locate and send a letter to Governor Newsome, your State Senator, and your Assemblyman.
Let them know what increasing lumber prices is doing to our community.
At the National level, go to https://www.house.gov/representatives to find and locate your Representative and https://www.senate.gov/senators/senators-contact.htm to contact your Senator.