One of the hardest hit industries from the current economic and supply chain crisis in this country is the home building business. When surveyed, nearly half of the companies that build homes are stagnant right now. This is not just an issue in the United States, either, as the crisis has impacted builders around the world. A survey by the Association of Professional Builders found that 52.7 percent of builders worldwide had no processes in place to improve their companies.
So, how does this impact you as a home buyer looking to find a builder for your new home?
Biggest Issues for New Home Builders
- Labor shortages
- Supply chain delays
As most reading this know, inflation is crushing everyone right now, including the home building business. Costs are up across the board, which trickles down to the overall price of home. Lumber, for instance, had seen a price increase that was 500 percent the cost of January 2020 costs, but those costs are starting to come down. As of September, the cost per thousand feet of board was down to $422.50, down from a high of $1500.50 in April 2021, and most recently, $1336.70 in February 2022.
Even with inflation, demand is still high for new homes. States like Texas are literally running out of space in cities and being forced to move out into the suburbs. Small towns that had 10,000 people are literally doubling in the space of just a few years. This boom has created a massive labor shortage in the industry.
Many builders had to lay workers off during the pandemic and they are still struggling to get their staffing levels what they were pre-pandemic, let alone adding staff to be able to address the housing boom.
Supply Chain Delays
The industry is still dealing with supply chain delays, but this is not necessarily as big an issue if you are flexible. One of the first questions you will need to ask your builder is what supplies they have in stock. People are that are doing this are getting into their homes far quicker than people ordering special-order windows and appliances.
An Ideal Situation for a Residential Construction Project Manager
With all of these challenges, it is an ideal situation to hire a residential construction project manager. For a new homeowner, navigating these waters can be both frustrating and difficult. Our team is used to working through these challenges. We can make recommended changes to ensure your project is finished on time and on budget. If you are interested in learning more about our residential construction services, click here.