LAS VEGAS (KLAS) — A shortage of lumber is causing new home prices to go up. According to Nat Hodgson with the Southern Nevada Home Builders Association, over the last 10 months, the cost of lumber has increased 215%. So imagine being a victim of lumber theft right now. That’s what happened to the owners of Woodside Homes of Nevada.
Thousands of dollars in lumber were stolen from the company, and aside from the rising costs of raw goods, sheer demand is making things even more challenging for those trying to build homes.
“New home inventory has been huge for us this year,” said Real Estate Broker Zar Zanganeh. “Builders are overwhelmed with the demand that they are experiencing, so instead of creating these long lists, they are now doing a lottery system which is the fairest way they can establish the few listing that they do have available.
People are turning to new construction because the re-sale market just isn’t what it used to be as more and more homeowners are staying put.
“Many people are nervous because if they do sell their home, they are nervous about purchasing another home in this market. They don’t want to end up in a situation where they don’t have a home to live in,” said Zanganeh.
With new construction homes, it’s hard to build them without material. Mo Haider, the General superintendent for builder ‘Woodside Homes of Nevada,’ explains that because of lumber’s high demand, it’s a common material to steal. That, combined with the pandemic effect — is making things tricky.
“We had about $10,000 worth of lumber stolen from this job site,” Haider said. “When COVID started, a lot of the mills shut down, and so that created a strain on what we have, so the demand of homes is high, with a limited supply. As mills are opening up, they have certain protocols with covid, and we are seeing that is reducing their production rates.”
As of now, Haider says Metro is aware of the incident, and they’ve asked new homeowners in the development to keep an eye out.