Construction prices are still elevated due to labor shortages, lumber is only a minor component.
And don't say "so pay labor more" because there is a labor shortage in every single industry. If you pay more for job x, job y will also go up, until everyone goes up and then inflation is higher.
There is no labor shortage. US prime age employment is far below that of other rich countries. We have a huge amount of slack.
And yes, "just pay more" is the solution. There is no shortage of Lamborghinis, but there is a shortage at $1000. Machine operators near me are paid $12/hour, the equivalent of 2009's minimum wage after inflation adjustment.
Yes, wages are too low. Yes, it's good to pay more money and for everyone to be forced to pay more money for wages. If you want cheap services built on extreme inequality, you're free to move to a 2nd or 3rd world country.
> Yes, it's good to pay more money and for everyone to be forced to pay more money for wages.
You might not have thought that through - if you actually did that, then everything costs more, and there is no net change in affordability. All you did was cause inflation.
If you want to help everyone, without drawbacks, then increased productivity is the way to go. Then things are cheaper. Services are harder to improve though.
> There is no labor shortage.
Unemployment is historically low, so that's not correct.
> You might not have thought that through - if you actually did that, then everything costs more, and there is no net change in affordability. All you did was cause inflation.
Is your mental model of goods and services that 100% of the cost is labor, and that everything is sold at-cost?
This makes absolutely no sense.
Unemployment is a flawed metric. Prime age employment captures everyone, not just those who fall under the government's many convenient exceptions.
And don't say "so pay labor more" because there is a labor shortage in every single industry. If you pay more for job x, job y will also go up, until everyone goes up and then inflation is higher.