[AT] Crazy pricing on construction job

[Ken Knierim]

I've been told that much of the construction shortages is due to the huge
amount of houses being built and/or remodeled for sale due to the low
interest rates. There are some big investment groups involved that buy up
housing as a sub-prime lending thing for housing. They're paying 10-15%
above asking price to secure the houses, then "rent to own" them, where the
renters rarely, if ever, buy them. Real Estate listings in Maricopa county
(Phoenix area) historically average 17000; currently there are around 2000.
My source is a construction guy who decided to build a metal shop. In the
time he's been building it, the price of materials has jumped 40% so far.

Even during COVID, car restoration parts were scarce because everyone was
locked at home, working on projects. Now trying to get simple driveline
components is ridiculous. Everyone wants to go somewhere and has those
stimulus checks to spend.

Ken in AZ

On Tue, May 11, 2021 at 11:31 PM deanvp <deanvp at att.net> wrote:

> I went to my favorite local lumber yard and asked a very simple question.
> How much has your price gone up on a 16' 2x8? Response: About 40%.
>
>
>
> Sent from my Galaxy
>
>
> -------- Original message --------
> From: Henry Miller <hank at millerfarm.com>
> Date: 5/11/21 4:02 AM (GMT-07:00)
> To: at at lists.antique-tractor.com
> Subject: Re: [AT] Crazy pricing on construction job
>
> Prices are insane. Sawmills shut down just like a lot of other things a
> year ago. Then everyone working from home decided that since they couldn't
> go out they may as well do that remodel job they had been putting off.
> Combined with other people who decided their parent's basement was too
> small if they had to do more than sleep there so they bought a house...
> demand has skyrocketed and the sawmills which were already behind can't
> keep up.
>
> I'm not sure if or when prices will come down. God doesn't give me
> investment advice.
>
> --
>   Henry Miller
>   hank at millerfarm.com
>
> On Mon, May 10, 2021, at 22:58, Dean VP wrote:
> > I received a few quotes on building a replacement deck on our house last
> > summer but had to abandon the project due to scheduling issues.  So I
> > immediately restarted the process this year after we got back from AZ. I
> am
> > completely flabbergasted by the prices I am getting this year.  The
> quotes I
> > have received so far are up by 80% to 125%.  Unbelievable.  I have been
> told
> > that lumber prices have quadrupled in the last year.  Is that really
> true? I
> > haven't gone to a lumber yard lately.  I've been told that 5 quarter
> Cedar
> > is slightly higher than a composite floor and I live where Cedar trees
> grow
> > wild. .  I am just flat stunned. How much of this is just fluff right now
> > and will eventually go away or is this inflation that is here to stay?
> Or
> > do I try and ride it out and wait another year. I didn't plan or expect
> the
> > have to pay this much for a new deck on the house.  The house and the
> > neighborhood will withstand this much investment but....WOW!!!   I
> honestly
> > feel like I'm a sucker right now.  What the heck is the cause of all
> this?
> >
> > Dean VP
> > Snohomish, WA 98290
> > "Socialism is a philosophy of failure, the creed of ignorance, and
> gospel of
> > envy, its inherent virtue is the equal sharing of misery."
> > ..Winston Churchill...
> >
> >
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