With the rise in residential construction, comes a rise in the costs of the materials to build those homes. In general, construction materials rose only 1.3 percent, according to an article in Finance & Commerce. However, some materials, including the all-important lumber, plywood, paint, and drywall, rose much more. Gypsum products rose 14 percent, while lumber, plywood, and paint, all exceeded 10 percent increases. Jeff Schoenwetter, of JMS Custom Homes, acknowledged that "the industry is passing those costs on to the consumer."

In part, the prices has risen because supplies tapered off when demand dropped. Now with more demand, manufacturers have to catch up. Ken Simonson, the chief economist of the Associated General Contractor of America noted that many gypsum plants and lumber mills shut down due to lack of demand.