TAMPA, Fla. — People are heading south to make Florida their home in record numbers.
When they get here, they need a place to live. Finding an existing home to buy is difficult and new home builders are having a hard time keeping up with demand.
So, will that hurt your home's value when the market stabilizes?
Buying a home right now is more expensive than ever.
Chuck Fowke, a custom home builder here in the Tampa Bay area and also the chairman of the board of the National Association of Home Builders said the price of lumber alone has added $36,000 to its price.
He says the current spike in the price of a new home may not translate when prices finally do stabilize.
"It's obvious in economics that if you overpay and prices adjust, you may have overpaid at that time."
Those high prices aren't expected to come down until some major issues are addressed in the supply chain.
"Something that has caused production to have its challenges right now is labor."
As far as recent reports of the prices of lumber coming down, that is a good thing. However, according to the National Association of Home Builders, that doesn't translate to the buyer initially. Lumber suppliers still need to make the money off of the price they originally paid for its supply.
It's likely that builders and consumers won't actually get a break on lumber prices until the cost goes down and stays down for an extended period.
It's a complicated issue that is affecting housing affordability across the board.
The White House is taking notice.
Recently, Commerce Secretary Gina Raimondo talked to builders, saying she will be heading up the newly created White House Supply Chain Task Force.
"I'll also be bringing together groups from across the supply chain to identify actions that we can take, public or private, large or small that can help surface near term and long term solutions to the supply chain problems."
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