Record High Lumber Prices Add $8,900 Per Unit to Multifamily Construction Cost
According to the National Association of Home Builders (NAHB), the price of framing lumber has more than tripled over the past 10 months.
This increased lumber cost adds over $8,900 per unit to the price of new apartment construction.
That equates to more than a million dollars on a 120-unit project.
But what can be done? Is there a reasonable alternative to tried-and-true wood frame?
There sure is.
And with lumber prices soaring, making the change now makes more sense than ever.
A Faster, Cheaper Alternative to Wood Frame
For years, insulated concrete forms have offered a faster and easier construction method than wood frame for a building’s structural shell. Additionally, concrete’s strength and energy efficiency provide significant cost savings and increased profitability in the long run.
But until recently, many companies did not consider insulated concrete forms for multifamily and hotel construction because of their perceived higher cost.
Now it’s time to reevaluate.
Not only is this building method stronger, quieter, faster and less of a fire hazard; but now it’s most likely less expensive than wood framing.
ICF to Wood Frame Comparison
Stronger - While wood buildings can burn, rot, or be blown away by tornadoes and hurricanes, concrete buildings will withstand it all.
Quieter - Insulated concrete forms reduce sound by over 50% compared with insulated wood walls.
More Energy Efficient - An ICF wall system can save owners up to 40% in heating and cooling costs.
Simpler Construction - Buildings made with insulated concrete forms go up quickly and efficiently — often faster than wood framing — because ICF technologies combine six building steps into one.
Better Materials - Unlike softwood lumber, concrete will not burn. It can take on temperatures over 1,000 degrees Fahrenheit.
Less Waste - Insulated concrete forms create less waste than concrete block, which equates to lower construction costs.
Low Maintenance Costs - Concrete requires very little upkeep, lasts longer and has lower life cycle costs. Upfront costs are also lower as smaller HVAC units are required due to increased energy efficiency.
Lower Insurance costs - Nationwide studies show that compared to wood-frame construction, mid-rise concrete buildings cost less to insure for both builders and owners.