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A lumber shortage has sent home prices soaring

According to the National Association of Home Builders, rising lumber prices have added nearly $36,000 to the average price of a new single-family home.

DENVER — A lumber shortage has raised prices across the country, causing a ripple effect in businesses that heavily rely on wood.

According to the National Association of Home Builders, rising lumber prices have added nearly $36,000 to the average price of a new single-family home.

"If there is a hiccup here and a hiccup there, it creates a tidal wave over here," Rebekah DeLaMare, an executive officer for the Home Builders Association of Southwest Colorado said.

"Unfortunately, those prices do get passed down to the consumer and there's not really any way you can spread that out through the rest of the industry unfortunately."

DeLaMare estimated the surge in price would likely last through the year. She suggested for anyone who was building a home and concerned about pricing to consider alternative building materials that may be more affordable. 

RELATED: Latest Denver-area housing market stats: Median single-family home price reaches $560K

The impact of the shortage has a ripple effect in every corner of the wood business, including small business woodworkers like Joe Gebhardt.

Gebhardt owns Colorado Joe's, a cornhole board building business. Gebhardt told 9NEWS prices for the wood he used have gone up by nearly 40%. While he has enough plywood to last him through the summer, Gebhardt is not sure what will come in the fall. 

RELATED: Existing US home sales fell in February, while prices rose

"We have a big push for Christmas gifts at the end of the year so that’s a big concern for us," he explained.

"It's a little stressful, nerve-racking knowing that when you talk to the guys in the industry, the suppliers, they don't know when it's going to come back online, so it's kind of up in the air."

Gebhardt told 9NEWS the best thing customers can do is to have patience and try to support local businesses as best you can.

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