Home builders have experienced their largest-ever increase in building costs so far in 2021.
This is according to the latest Producer Price Index report.
Year to date, building costs are up 14.5%. This amount tops the previous record of 7.1% which occurred in 2008.
Specific materials which have seen significant increases include lumber, drywall and steel.
The price of steel has risen 117% this year.
These material cost increases combined with increases in items like building permits and tap fees are causing home builders to raise their sales prices.