Building Costs Breakdown: The Latest on Lumber Prices & Labor Challenges

Download MP3
Episode Show Notes / Description: 
  • Today, we discuss two major factors affecting the construction industry: materials and labor.
  • We start with the realities of labor based on a recent video and viewer comments about the difficulty of finding reliable workers.
  • Some viewers implied builders might be underpaying workers, but from our experience, it’s not about finding cheap labor—there are plenty of entry-level workers available.
  • We pay entry-level construction workers between $35 to $50 per hour, depending on skill and project needs. These workers handle basic tasks like swinging a hammer and following directions, not skilled craftsmanship.
  • The challenge is not finding entry-level labor, but their reliability—some show up only for a few days before disappearing, even at these rates.
  • The bigger problem is finding higher-skilled workers willing to work at rates from $80 to $100+ per hour. We also offer training for workers to advance their skills and pay, but many struggle to reach the higher skill levels needed.
  • We invite builders to share their experiences with labor availability and reliability.
  • On the materials side, a report from a user visiting Home Depot showed lumber prices have changed significantly over the past 18 months.
  • While we generally don’t recommend big-box stores for professional builders due to limited service and sometimes higher prices, the user managed to spend about $800 for a truckload of materials like 2x4s and sheet stock.
  • Many customers report difficulty getting staff assistance at big-box stores, especially for sourcing and loading materials.
  • Local lumber yards or pro distributors often provide better service, including pricing, invoicing, delivery, and loading help.
  • Lumber prices have come down from their peak 18 months ago, making project bidding somewhat easier, though prices are still higher than 3-4 years ago.
  • There remains some volatility in the market and quality issues with lumber, such as more knots and cutouts, which can cause inspection and permit challenges if the materials do not meet code requirements.
  • We encourage listeners to share their observations and experiences with lumber prices and labor challenges in their areas.
Building Costs Breakdown: The Latest on Lumber Prices & Labor Challenges
Broadcast by