 The second half of 2020 through the first half of 2022 led to extensive investment. Mills investing in existing capacity, new capacity. So last week, I asked economist Robert Dietz at the National Association of Home Builders, if lumber's relatively cheap, why are new homes still so expensive? Building material costs are 30% higher compared to 2019. A lot goes into building or remodeling a home, says Carlos Martin at the Harvard Joint Center for Housing Studies.