Page 11 - Georgia Forestry - Issue 4 - Fall 2022

“You can’t avoid reading news stories on pending recession [and] state of
the housing market. Things are still relatively affordable today. Demand is there. It’s sentiment, we think, that’s driven this pullback we’ve seen of late.”
— John Cooney, Equity Analyst, ERA Forest Products Research
nearly impossible to build. Building materials have been a factor, but the cost of permitting in some states is astronomical,” said Cooney. “So that’s something that homebuilders I think will have to address. Decline in building material costs will help, but that’s only 15 to 20% of the cost of building a home. There’s going to have to be some action on permitting costs, and if we do get a correction, I think land costs will also come down a bit in tow.”
While there are many factors con- tributing to the solid wood market and real estate, the greater picture suggests that there is a lot of room for the market to stabilize over coming months, and few conditions that would continue its volatility.
“It’s difficult to predict where we are going exactly, but I do believe we are certainly headed in the right direction, at least in terms of the solid lumber markets,” said Cooney.
JOHN CASEY IS A STRATEGIC COMMUNICATIONS CONSULTANT WITH A PRIMARY FOCUS ON JOURNALISM, POLITICS AND PUBLIC POLICY.
starts we hit in 2007 before the market collapsed,” said Cooney. “There is mas- sive, pent-up underlying demand that has not been serviced yet and that will really help bolster us and kind of carry us through this sticky period over the next six months.”
The only thing holding back poten- tial home builders is the affordability of these builds, with new home sales under $400k collapsing as a result of building
costs. The issue is, it’s not the supplies that are driving up the costs.
“One concern I have on that front is how difficult it has become to build the entry level of affordable homes. The home builders had a big push maybe three years ago to address this millennial first-time homebuyer who wanted out of the city and out of their apartments into a single-family, two-bed, three-bed home [for] $250 to $350k. That has become
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