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Builders need to be more resourceful than ever with rising cost of building materials


As if a bullish housing market hasn’t created enough headaches for builders, earlier this week, the National Association of Home Builders pointed to the rising costs of building materials as a threat to profit margins.

According to the Wall Street Journal, citing the Producer Price Index, some of the most notable year-over-year price hikes for building materials include:

Copper (+23%) – used in many tools, interior design accessories and plumbing
Insulation (+6.25%) – a critical element to an energy efficient home
Asphalt (+4.5%) – used in foundation, driveways and landscaping

Price hikes put the onus on builders, architects and designers to be value-minded without compromising quality. We’re curious – even with building materials becoming more costly, how do you improve margins among difficult economic conditions?