Industry Overview
Real estate development is one of the most commodity-intensive economic activities. A typical single-family home requires approximately 400 pounds of copper (wiring, plumbing), 16,000 board feet of lumber, and significant quantities of steel and concrete. Commercial construction is even more metals-intensive. Lumber price volatility has been extreme since 2020, with prices swinging from $300 to over $1,700 per thousand board feet. Copper wiring and plumbing costs have doubled since 2020. These input costs directly impact construction feasibility, housing affordability, and developer margins.
Commodity Exposure
Key Companies
Related ETFs
VNQ (Vanguard Real Estate ETF)
IYR (iShares U.S. Real Estate ETF)