Since the start of the pandemic, homeowners have put more weight on their outdoor spaces. As such, real estate listings may want to highlight what a home has to offer in the backyard, front yard, balcony, deck, or lawn space.

Sixty-two percent of consumers said they’ve spent more time outdoors since the pandemic, according to a new survey from Gardens Alive, a garden and lawn supply company. Gardens Alive surveyed more than 900 people nationwide to find out how the pandemic has changed their perceptions over outdoor spaces.

The pandemic may have prompted more homebodies. Seventy-two percent of respondents say they would rather invest in their home than go on a vacation this summer. They’re putting more focus on their yards too as they stay at home. Forty-four percent say they plan to spend between $101 to $1,000 to spruce up their outdoor living spaces. Another quarter of respondents will spend between $1,001 to $5,000 to enhance their outdoor space.

The following chart shows the primary purpose respondents desire for their outdoor concept or design:

Consumers also mostly favored a “modern” design style for their outdoor space. The top three outdoor elements they want: Flowers, plants, or greenery (21%); BBQ/food preparation area (17%); and lounge/chaise seating (14%).

Greenery appears to be an important focal point in any yard, too. Thirty-two percent of respondents said they wanted a green backdrop and nearly 30% said they wanted pops of color with plants. A quarter of respondents also sought to use plants to add more privacy to their yards.

The Gardens Alive survey also found homeowners in certain states may be even more likely to improve and focus on their outdoor space, particularly in Maine, Mississippi, Alaska, Nevada, Arkansas, California, Wisconsin, and Louisiana.

National Association of REALTORS®
Reprinted with permission

A strong online photo presentation of a home may have never been more important than it is now. The share of home buyers who used the internet to search for a home increased to an all-time high of 97%, according to the 2020 Profile of Home Buyers and Sellers report conducted by the National Association of REALTORS®.

Real estate pros will want to make sure their seller clients prepare their house so it’s captured in its best light. Home stagers often will give recommendations of items to remove and how to position furnishings or accessories. Apartment Therapy recently highlighted several items to remove before a real estate photography shoot, including:

1. Tall vases: Large floral arrangements can be distracting in a two-dimensional photograph, and they can also hide the depth of a space, Robert Moreno, a real estate photographer in Boston, told Apartment Therapy. He says a low-profile arrangement would be better in a photograph to help maximize the viewpoint and layout.

2. Small rugs: Floor mats and runners can make a space appear smaller. “You want to be able to see the original flooring, and if you move tiny rugs and floor mats, it makes the space look bigger,” Zoe Wetherall, a freelance photographer in New York City, told Apartment Therapy.

3. Mismatched lightbulbs: Using both warm and cool lightbulbs in the same space can cause bad lighting in the photograph. Make sure to use the same type of lightbulb in the room. Most home stagers recommend warm or soft white bulbs with lower Kelvin ratings.

Read more tips on what to remove prior to a listing photo shoot at Apartment Therapy or check out these resources:

Staging Tips: Styling for the Photo Shoot

Top 10 Tips for Staging a Home for Photos

8 Camera Tips to Capture a Room’s Size

No Cost: A Photogenic Listing

Amateur vs. Pro Photos: See the Difference

National Association of REALTORS®
Reprinted with permission

Climate, wildlife, sun, and water (or lack thereof) can take a toll on yards. But sustainable landscaping helps homeowners produce a higher return on their investment while adding greater delight.

3 Takeaways:

• Homeowners need to plan out plant and landscaping purchases to meet the needs of a property.
• Smart landscaping choices can also curtail energy use.
• Natural stones for hardscape allow water to seep into the ground and won’t fade or decay.

To get through the last 15 months of the pandemic, many homeowners looked to their yards and gardens as an escape where they could work, enjoy nature, and breathe in fresh air.

Numerous homeowners planted vegetable and flower gardens in containers and newly tilled soil, introducing color, fragrance, and texture to their yards. Others roasted s’mores in new fire pits. And some installed pools, ponds, and fountains to see and hear water.

However, these outdoor spaces aren’t challenge-free. Squirrels, deer, and moles can munch on hostas, roses, vegetables, herbs, and fruits. And now, as all the annuals planted a year ago need to be replaced, the time-consuming downside to gardening is becoming apparent to some homeowners.

But sustainability can help.

Homes with more sustainable materials—inside and out—last longer, require less maintenance, and have a smaller carbon footprint. Designer Jim Charlier, who helped expand Buffalo, N.Y.’s annual GardenWalkBuffalo into of the country’s largest residential garden tour, and co-authored the book Buffalo-Style Gardens (St. Lynn’s Press, 2019), learned this lesson after needing to replace a rotted picket fence. He chose cedar since he knew it could stand up to tough winters, even though the initial cost was high.

Charlier and other gardening experts offer advice for homeowners on overcoming landscaping challenges to produce a sustainable garden that meets the ultimate test—adding joy.

Start with a plan. Many homeowners go to nurseries and buy willy-nilly rather than according to a plan. It’s like heading to a grocery store and being tempted by chips, cookies, and candy when that’s not what’s needed to prepare a healthy meal. When homeowners plan a garden–especially a sustainable one—sometimes the most efficient, economical way to start is to hire a professional to design it and relate it to the home.

The cost of a typical plan may range from a low $1,500, up to $15,000 or more, depending on the garden’s size, number of plants, features—such as a gazebo or pool, whether designs for irrigation, hardscaping, and lighting are included, and how fancy final drawing looks, says Southampton Township, N.J.-based landscape architect Steve Chepurny of Beechwood Landscape Architecture. When it comes to installation, one area can be planted at a time, which will help homeowners spread out costs and see how the garden grows and evolves. “The first year they sleep, the second year they creep, and the third year they leap,” says Michael Glassman, a Sacramento, Calif.-based landscape designer.

Weather. Severe weather can damage plants, hardscaping, and structural features such as fences, trellises, and sheds. While nobody can control Mother Nature, homeowners can make choices that are better suited to their climate, such as buying trees that are more likely to survive a harsh winter in the Northeast (a Norway Spruce) or strong sun in the South and Southwest (a Queen Palm), says Glassman. And many areas have microclimates. A north-facing slope in Aspen, Colo., will have different weather than a south-facing slope, hence requiring different plants, says Aspen landscape architect Mike Albert, principal at Design Workshop.

Smart landscaping choices can also curtail energy use. The right trees and shrubs can block wind, snow, and cold in winter and provide shade in summer, Glassman says. Some old-fashioned legwork will help, too, which involves checking on the amount of sun and shade in different parts of a yard, says Chepurny.

Soil. Not all soil is the same. It may be wet or dry, or full of clay, rocks, or salt. It’s key that homeowners understand that different plants thrive better in different soils. Some garden experts like Chepurny tell homeowners to take a sample to their local cooperative extension service to have it tested so they know what amendments might help or let a garden expert advise them.

Glassman recommends that new homeowners hire a certified arborist to assess the condition of their trees and determine if they need fertilizing, aerating, or pruning. Adding a layer of mulch once a year also helps plantings retain moisture and prevent erosion.

When it comes to watering, a sprinkler system is essential, whether it’s a hose lugged around or, if in the budget, a built-in system that can shut off when sensors detect rain. Different areas of the yard and garden should be watered according to their needs—or controlled via a smart sprinkler system through an app. “Some trees like a river birch need more water than others,” says Westfield, N.J., landscape architect Marc Nissim of Harmony Design.

Plants. Charlier says the most important way to make a home’s landscaping sustainable is by matching the right plants to the right location. For example, a homeowner shouldn’t plant too much ivy on a house since it will grow and cover it, but it could cause damage, he says. If homeowners love hydrangeas, they should plant them in sun or they won’t bloom, says Chicago-based landscape architect James Bertrand. While using native plants can be wise, not all thrive magically just because they’re indigenous, Glassman says. He thinks it’s better to take a walk in your neighborhood and see what’s thriving that you like. “If you see something and don’t know its name, take a photo and show it to your nursery or your landscaper,” he suggests.

The location within the yard should also be factored in, says Albert, whose firm often plants different materials close to a house for an ornamental, cultivated effect, and then goes with something more local further out so the choices appear as if they’ve always existed.

Planting an edible garden—which many did during the pandemic—can become a family activity. Chicago landscape architect Ryan Kettelkamp, together with his family, planted a victory-style garden in their Evanston, Ill., yard. It’s also wise for homeowners to plant for each season so produce is available all year, such as broccoli in spring, tomatoes in summer, and cauliflower in fall. The same rule applies to year-round blooms and berries, Bertrand says. Another sustainable choice is to introduce pollinator-friendly plants that attract bees, butterflies, and birds, such as viburnum, roses, some varieties of hydrangeas, and spirea.

A green, weed-free lawn may be high on homeowners’ wish lists but it’s among the highest maintenance features. “People love grass, but it requires cutting, fertilizing, watering,” Chepurny says. Nissim suggests a hardy groundcover like Pachysandra or Carex grass. Tall plantings can become a natural privacy screen.

Drainage. Too much water pooling can do damage, which may happen if the site’s topography slopes and water don’t have anywhere to run or consist of impervious rather than porous hardscape. Some sites require installing a French drain to carry water away. Setting out cisterns to catch falling water allows it to be recycled.

Wildlife. Homeowners should learn which animals frequent their area to avoid plants that attract them, Glassman says. For example, deer are known to love hostas and roses. He learned that lesson himself after planting a rose garden that deer mow down within a week. There are also disease-resistant plants to help avoid bugs. If planting vegetables, he suggests digging down two feet and installing heavy wire mesh over the ground. Homeowners may also consider building a fence. Albert says shrubs that produce berries are avoided by homeowners in his Aspen area because they bring forth bears.

Hardscape. Some hardscaping is desired in landscapes, but homeowners should consider which types will wear best in the climate’s different seasons. Look for materials that won’t fade and will allow water to seep into the ground, which is key to sustainability. Glassman and others favor natural stones for this reason.

“While concrete can work well and is affordable, it has a more limited shelf life and starts to degrade,” he says.

He also prefers steel rather than wood in building outside structures like trellises and pergolas because it doesn’t rot, crack, or require repainting. Bertrand likes porcelain tiles for terraces, which have become popular indoors. Nissim favors fieldstone because it wears well and won’t go out of style. Chepurny’ s test for almost any choice is “the cost of ownership”—how much needs to be spent initially and then over time. 

Fire and water. They’re among the two most desired features to add into landscapes today. But how to do so sustainably requires thoughtfulness. Fire pits became so popular during the height of the pandemic to extend use into evenings and on chilly days that some manufacturers ran out. The most sustainable designs use firewood from the property.

The look and sound of water can be delightful, particularly when it comes from a luxurious pool or pond that spills over rocks. But both require a large amount of maintenance and expense. “There are so many moving parts with a pool—filtration, sanitizing, heating, cleaning,” says Bertrand. Yet, waterfalls and jets can recirculate water, which helps them be more sustainable. One new sustainable alternative is to use a recycled shipping container, Glassman says, adding, “It takes less time to turn it into a pool than starting from scratch.”

He recommends other smaller-scale options like a pondless waterfall with underground basin, so water doesn’t stand still and attract mosquitoes, or plug ‘n play urns.

Lighting. Too many homeowners fail to install sufficient exterior lighting to extend use into night and many continue to use inefficient, energy-guzzling incandescent lamps rather than LEDs. Good lighting adds drama, too, Chepurny says. Bertrand likes using LEDs in sconces attached to a house, since those in the ground may get damaged by a lawnmower or snowplow or be chewed up by animals. Albert’s firm suggests adding an automated timer to promote “dark-sky” and avoid disrupting animal habits or cause light pollution.

Real estate pros can encourage homeowners to learn by trial and error and view their landscape as another room of their house. “The goal should be to use the space as a destination to eat, cook, relax, and watch a movie rather than not use it at all,” Glassman says.

Resilient landscapes for multifamily buildings. Single-family homes aren’t the only places where sustainable gardens are growing. More developers and property managers are making their outdoor infrastructure and plantings resilient. Lendlease, a global developer, is in the process of transforming seven acres in its Southbank development along the Chicago River for its residents and the public. The company is also turning the roofs of its two multifamily into farms with vegetables, fruits, and active beehives.

Southbank Park Ampitheater in Chicago.

The 29-story Cooper building, which opened in 2018, and the 41-story Reed building, where ground will be broken this summer, will enjoy views of Southbank Park, which was designed to keep the river’s edge as natural as possible with native plantings that don’t require irrigation and will attract native birds and bees, says Linda Kozloski, the company’s creative design director.

The Chicago landscape architecture firm Hoerr Schaudt designed the Southbank Park, and Confluence, based in Des Moines, Iowa, installed the plan, which incorporates a stormwater management infrastructure to mitigate runoff, a large lawn oval, amphitheater constructed from stones found on the site. and plantings that provide year-round interest and thrive even when the river rises after a rainstorm. An amenity deck at level six of The Cooper features herb and vegetable gardens, and residents can use the produce for salsas and Mediterranean-inspired favorites. To add a novel touch, students at the University of Illinois, Chicago, designed birdhouses that were placed along the river walk to attract native birds since they, too, need well-designed homes.

National Association of REALTORS®
Reprinted with permission

Homeowners have focused heavily on making the backyard more functional since the pandemic, but it’s important not to forget about style and aesthetics. Interior stylists Shelby Greene and Kate Leyendecker of furniture retailer Living Spaces offer inexpensive touches that can give the backyard a luxury look.

1. Pay attention to details. Curate a corner of the backyard with matching seats, coffee tables, side tables, cushions, and throw pillows. This will create a focal point for the outdoor space and a lounge area where guests can relax and soak up the nice weather. You can also add a little bit of luxe with stylish vases, planters, and trays. These little details don’t cost much and bring a look together to create a functional and relaxing outdoor oasis.

2. Get creative with lighting. One of the easiest ways to elevate the backyard is to incorporate fun and practical lighting. It doesn’t take many lights to transform an outdoor space into a beautiful and vibrant area, especially at night.

Try using “plant furniture” like these plant holders made of cane.

3. Set up outdoor “rooms.” Create easily defined areas within the backyard for activities like cooking, eating, and relaxing. The separation of a dining, lounging, grilling, and kids’ play areas will create organization and a natural flow. Creating different “rooms” within the backyard will make it feel like as much of a sanctuary as your actual house.

4. Use exotic “plant furniture.” As Japandi style gains popularity, cane—a plant sourced from parts of Asia—is taking on a larger role in landscape design. Play with an international vibe by pairing cane with other “plant furniture,” such as rattan, to help the backyard feel more like an escape. Remember: Whether you’re working with outdoor chairs, benches, or sofas made of cane, it’s a good idea to layer on seat cushions to contrast textures and colors.

National Association of REALTORS®
Reprinted with permission

One in three consumers believes their dream home is financially attainable one day, according to a new survey from Buildworld, an international company that offers building materials. Millennials are the most optimistic, with about 38% believing they’ll one day buy their dream home, while Gen Z is the least optimistic at about 19%.

What makes a dream home? Buildworld recently surveyed 1,000 consumers in the U.S. and United Kingdom to find out.

Here are some highlights from the study.

Exteriors and Interior Home Preferences

Modern farmhouse exterior styles and a rustic modern interior were among the most popular.

One in five consumers called the modern farmhouse their “dream home.” A modern farmhouse combines contemporary style with a farmhouse aesthetic.

Inside, rustic modern was the most popular interior style. It includes modern furniture with preserved and natural architectural features, an open floor, and lots of light, Buildworld notes.

Age groups tended to show slightly different preferences for interiors and exteriors.

Most Desired Amenities

Outdoor home features have gotten more priority since the pandemic, such as gardens, patios, and porch spaces.

Overall, the must-have home features among U.S. respondents for a dream home were: a garden, garage, patio or porch, natural light, and a primary suite with a bathroom.

Buildworld’s survey revealed the following amenities created a dream home for most respondents.

National Association of REALTORS®
Reprinted with permission

With inventory still low, more home buyers look to plan B: new builds. But that, too, has become tough with land and labor growing scarcer and supply chain struggles lingering. Help clients navigate alternatives.

3 Takeaways:

• Material and labor shortages require longer wait times.
• Prefab, spec, and pre-designed plans can help curtail long time frames.
• Building codes and the property’s topography should be thoroughly assessed to avoid setbacks.

As the pandemic housing boom continues, many buyers are still losing out on homes as they go up against higher bids. Some are now seeking out land and new construction to get the home they want.

But this strategy has its own set of peccadillos, including a shortage of buildable sites, which associate real estate broker Kim Cantine, with Halter Associates Realty in Bearsville, N.Y., says is not brand-new. “My area is experiencing its fifth year of low land inventory,” she says.

Land prices have also climbed and are experiencing bidding wars, Cantine says. To cope, some home buyers look to the popular 1980s alternative of tearing down a house to build a new one, says Ben Brittingham, vice president of marketing and sales with MN Custom Homes in the Seattle area.

However, that’s not a solution either since builders, architects, and contractors are swamped with requests, and building materials and appliances are priced higher and are frequently out of stock. Those performing the work can charge more or take only jobs they prefer.

What’s a frustrated buyer to do? Real estate agents and brokers can enable them to explore all options and find a big dose of patience.

Buy a Stock Building Plan

One way to shorten the new construction process and pare costs is to go with an existing house plan, a process like buying off the shelf rather than developing a custom plan. Tim Bakke, director of publishing at The Plan Collection, a 30-year-old company that now has more than 22,000 plans in its inventory and continues to design new ones, says a predesigned plan can shave a few months off the process and cut the design cost by at least $7,000 to $8,000, depending on the complexity and cost of labor.

Though the design won’t be custom, choices are sufficiently varied in number of bedrooms and bathrooms, style of layout, number of levels, amount of outdoor space, and many other features. The exteriors are also diverse, from the popular modern farmhouse look to more traditional Tudors and Colonials. One drawback, Bakke says, is that substantial changes, such as structural walls being moved, can’t be made without incurring added costs. But if a buyer thinks they may want more space, Bakke suggests starting with a larger footprint to have square footage to manipulate.

Build Custom

Hiring an architect or builder to design a house from the ground up is a major undertaking that requires making countless decisions, such as the size of the kitchen, height of ceilings and windows, number of bedrooms and bathrooms, type of doorknob, and even width of hallways. The advantage of this route is it gives homeowners more of what they want for their budget. “They can put solar panels on the roof to lower costs and make it passive and environmentally friendly, for example,” says Los Angeles–based attorney Robin Finch, a real estate partner at Greenberg Glusker.

The downside to building custom is that the process takes typically three to six months for the design, time to secure permits and approvals, and, depending on the size of the project, 12 to 16 months for building under normal non-pandemic conditions, says architect Victor Body-Lawson of Body Lawson Associates in New York City. Costs are also generally higher: The architect often charges a design fee (4% to 10% of construction costs) and a 10% contingency fee. On top of this, materials and appliances have jumped by as much as 20% per month in the current frenzied climate, he says.

Go With a Spec Home

Buyers have another possibility—selecting a house that a builder is constructing or has finished as a stand-alone residence or perhaps as part of a development. Depending on when clients buy affects how many choices they get to make, says Brittingham. If the house is finished, they buy what the builder has selected. But if framing has just begun, they may be able to make choices in such categories as tiles, countertops, vanities, flooring, cabinets, lighting, and more. Some builders offer choices at different price levels, such as laminate at a certain cost or pricier marble at a higher cost.

One distinct advantage is that the price point may be 10% to 20% less than a custom home because of economies of scale—though this is not guaranteed due to COVID-19, says Brittingham, whose homes average $2 million to $6 million. 

Think Prefab

Prefabricated home options have increased, with more companies building houses in a factory, says Sheri Koones, author of several books, including Prefabulous and Sustainable. Many of these companies are seeing great demand, including for houses to help house those experiencing homeless, she says.

Because of the building boom, the supply chain for this sector has been disrupted, too, says John Colucci of Westchester Modular Homes in Wingdale, N.Y. “We are not only paying top dollar for materials, but the lead times have created a slowdown. That being said, modular is still faster than stick building since we managed to keep our labor. We are all so busy, but some would-be customers are sitting on the sidelines,” he says.

Factors Home Buyers Should Weigh Before Proceeding

How much will a house cost? Buyers must be realistic—they should budget 15% to 20% more than they expect the house to cost, especially as COVID-19 has increased costs of materials, appliances, and labor, Bakke says. When a mortgage is needed, Bakke says, it’s wise to remind buyers to consider the rule of not spending more than 28% of their monthly gross income. Others think the percentage should be based on overall life goals, which is why consulting a financial planner is wise. New construction requires a construction or bridge loan that converts to a traditional mortgage when the house is completed.

How much square footage is needed? Figuring out size can be tough in the abstract. Some 2,500-square-foot homes, for example, seem larger than others, which often depends on the amount of hallway space, height of ceilings, windows, and light. It’s best for buyers to walk through existing homes to get an idea and list which rooms they want and dimensions. Architect and author Sarah Susanka started her “not-so-big house” movement decades ago to emphasize the importance of having every inch count and spaces do double duty, which may help cut costs.

Homeowners should also bear in mind that square footage is the single biggest driver in determining building costs, says Bakke. The cost varies widely in different parts of the country. According to 2019 U.S. Census Bureau data, the median price per square foot for a contractor-built single-family home was $114, but these days many cite higher prices of $300 to $400, and in certain cities like San Francisco and Boston they may rise to $600, says Madison, Conn.–based architect Duo Dickinson. Finishes also affect pricing.

How much detailing is included in a plan? After interviewing two or three architects or builders to design the house, home buyers should check references (like from a local American Institute of Architects list), licenses, insurance, and referrals and decide—or go with a design from a plan company. It’s critical to read the plan to be sure everything is included and in the right place, including windows, electrical outlets, roofing trusses, stairs, doors, and plumbing. A bank may need detailed construction drawings and a site plan, according to Bakke. If a buyer doesn’t understand how to read a plan, suggest they learn from sites such as The Basics: How to Read Architectural Plans.

Why is the site key? The spec house builder will have vetted the land choice, but a custom house requires a buyer find a suitable lot. Not all lots—even those that are the same size—meet that criterion. Some require trees to be removed, septic systems and power lines to be added, and soil to be tested, says Dickinson. Body-Lawson says the geological makeup should be studied because it may cost more to excavate a rocky or wetlands site, if allowed. Information about the area’s broadband capability is important, particularly as many people work from home.

A professional on the team also needs to check town rules about land records to be certain there are no outstanding liens and to know the setback limits. These days, some information can be gleaned from aerial photographs and mapping systems that a building department usually has, says Dickinson.

To curtail costs, Body-Lawson recommends that homeowners try to buy undervalued land, which may mean a site farther from town or with fewer features on buyers’ wish lists—such as a chance of forgoing mountain views. They should also avoid overbuilding for their area, since prices may not continue to rise.

Why secure multiple bids? For the actual design, the buyer should secure three bids that compare apples with apples. Bakke says any contractor or builder hired should have experience in the homeowner’s area, so they understand the topography and local building codes. Sometimes, a bank may ask a builder to complete a review application to be sure the person is licensed and insured and has a history of successfully completing projects, Bakke says.

Take Time to Draft a Detailed Contract 

With so many details to consider, and so many different work crews involved in the process—including subcontractors and landscapers—it’s critical that a homeowner have contracts with all those involved, which a real estate attorney should review. Los Angeles–based attorney Robin Finch of Greenberg Glusker suggests bringing in an attorney early in the process, even before land is bought.

The contract should specify the amount of the down payment, how much to pay at specified time periods, how to handle change orders, the amount to hold back until everything on the punch list is completed satisfactorily, for what reasons a contract can be cancelled, and for how long a warranty guarantees work such as a house settling, says Ann O’Connell, an attorney and legal editor at Nolo, a legal publisher of books and software based in Berkeley, Calif.

At the same time, these tough COVID-19 times require flexibility, says architect Katy Flammia, design director of the Hudson, N.Y., office of New York City–based Spacesmith, an architecture and interior design firm. “We’re finding with construction that it’s almost impossible now to establish construction costs, which we used to keep the design within our client’s budget. What our clients could buy a year ago is different than what it costs now, and we’re seeing almost weekly price increases,” she says. Furthermore, she cautions clients to be flexible. “They may want to have a list of alternates in materials and scope, and even construction method alternates such as prefab components,” she says.

Some of the former ways that homeowners could protect themselves in their contract may no longer be included. Because of COVID-19 work delays, shutdowns, and price increases, it may be impossible to convince an architect and general contractor to agree to include financial penalties, known as liquidated or punitive damages, if someone gets sick and is off the job for a while or if prices rise higher than they expected, Finch says. So much is market driven, she adds. To resolve any potential problems on either side, it’s best if mediation can be stipulated as a recourse rather than litigation, due to lawyer and court costs and time, says O’Connell.

What About Those Rising Lumber Prices?

Lumber prices—plywood, hardwood, and softwood—have soared across the board. In fact, costs are up 130% since the start of the COVID-19 pandemic more than a year ago, adding $30,000 to the price of a new home, according to the National Association of Home Builders.

Because of the prices, as well as significant shortages, many architects, builders, and home buyers are asking two key questions: How long will the surge continue and why did it happen in the first place? Tony Uphoff, president and CEO of Thomas, which provides analysis and tools that reflect the buying process, says his company data shows a steady surge in sourcing activity for lumber over the last year.

“The situation,” he says, “has been long in the making. As a country, we have relied on Canadian forest lumber whose supply has diminished in recent years.” Part of the problem is also due to tariffs going up, which resulted in further withering demand in the U.S. due to the increased prices. As a result, Canadian mills began to shut down locations to protect themselves against lost revenue, he says, adding, “This initial step was magnified as we entered the early stage of the pandemic. Then, with many working from home, they began to evaluate their living quarters. Some sought more space, which drove a spike in residential housing prices and new construction. And many already owning a home spent more time and took on more projects.” The upshot, he explains, was “exacerbated demand on an already fragile lumber supply chain, which drove prices to an all-time high.”

And there’s more, he says. “The continued result is that some builders are pausing their work on new construction projects due to the high lumber prices. Other construction companies report that even at high prices, they are having difficulty sourcing supply through their established supply chains.”

But some good news has been emerging for several weeks. Sawmills have increased output over the last year and another increase is expected, according to Alex Hickey in her “Morning Brew” report. Most recently, prices started to fall, though what will happen over the long term is anybody’s guess. Homeowners and the professionals working on their homes are wise to keep an eye on prices and anticipate a possible seesaw effect, especially as COVID-19 numbers ramp back up.

National Association of REALTORS®
Reprinted with permission