Demand for building materials, especially lumber, is skyrocketing.
“We’re at a 40-year high, I believe, for the cost of lumber and it’s just exponential. It keeps growing, and growing, and growing,” said local contractor Darren Klajch.
In his four decades in the industry, Klajch said he’s never seen anything like it.
“We’re talking everything, drywall, you know, roofing materials, all of it. It’s crazy,” he said.
Frank Clarke, the operations manager at Lumberworld in Saanich, echoed those remarks.
“We were struggling to try and keep it in stock,” said Clarke.
He said the price of lumber is double what it was this time last year and everyone believes it will continue to climb.
“Well, prices are going to be higher. For how much longer, I have no idea. It really depends on what happens as we go further. Some people may stop building. Most of my contractors, by the sound of it, are still quite busy this year,” Clarke said.
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As the cost of building materials increase, it translates into tens of thousands of dollars added to the cost of a new home while it’s under construction. Demand from the United States means competition for raw material is also pushing up costs for locals.
Rory Kulmala, CEO of the Vancouver Island Construction Association, said a shortage of raw materials is not the only issue, but the fact there are not enough skilled workers, which also adds additional pressures and costs to projects.
“I think the overall consumption of materials for construction is there being priced escalations right across the board. So, you know, anywhere from 20 to 30 per cent is not is coming of no surprise to our industry,” Kulmala said.
Klajch said he can’t believe that prices continue to escalate.
“It’s nuts,” he said.
For now, the home construction market is booming, but projects could end up cancelled if the costs spiral out of control.
Mary Griffin
