New homes are getting more expensive to buy because of rising lumber prices

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By , KNX 1070 Newsradio

New homes are getting more expensive to buy because of rising lumber prices.

They've tripled since the pandemic started.

The National Association of Home Builders says this adds an average of nearly $36,000 to the price of a new home.

Bob Dixon runs a lumber mill in Alabama and tells CBS staffing and delivery are making it hard to respond to the increase in lumber demand.

"The issue now with employees being paid to stay home, it's not just our industry, it's everywhere you go," he says.

One economist says there's also increased demand for lumber due to home renovations.

Commerce Department data shows permits for home construction have grown across the country this year but Bank of America says rising costs for home builders are actually holding back production.

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