Labour prices appear to be driving up the price of homes in Western Canada.
According to the Western Retail Lumber Association, direct lumber material costs make up only about four per cent of a new home’s price.
“As lumber prices have reached record highs in North America, the cost of housing has been discussed at length, but material costs are only part of the bill when people plan to build a new home,” said Liz Kovach, president of the WRLA in a news release.
“The largest line item is labour — at half of the home’s cost. It’s important to keep things in perspective. Many new homes that are being built are large houses, but the proportion of the bill that’s lumber is relative.”
Kovach said labour makes up 50 per cent of the cost, with mechanical, electrical, heating, cooling, plumbing coming in at 22 per cent.
Trim/ kitchen, floor/ roof system and lumber all make up four per cent, with siding/ soffits and windows and doors costing three per cent.
Paint, shingles and insulation all make up one per cent of the total cost.