Supply Chain Delays and Labor Shortages Continue to Increase New Home Costs and Build Times
Global and local labor and material shortages are increasing home prices and stalling build times. These ongoing issues have led to frustration for both home buyers and the construction companies hired to build new homes.
What Is Causing Home Building Delays and Increasing Prices?
The three main problems affecting home prices and delays are material shortages, labor shortages, and supply chain delays.
Construction companies are finding it difficult to hire enough skilled workers to keep up with the workload. There are currently more workers separating from this industry than can be hired. It’s also been hard to find and hire subcontractors to do jobs like pouring concrete.
The lack of labor extends beyond the construction industry. A shortage of dockworkers and truckers has made getting the necessary supplies a lengthy process. Even manufacturing plants are short-staffed due to continued outbreaks of COVID. Due to these challenges production has been faced with huge stalls and a reduction of output.
It is not just the pandemic that is causing problems. The disastrous winter storm that hit Texas in 2021 has greatly impacted both the chemical and manufacturing industries throughout the nation.
A reduced labor force means that materials aren’t being produced at the same rate as before. This has caused additional issues with the supply chain. It’s already been difficult for companies to hire truck drivers to transport goods across the country. Now, the shipping schedules have become interrupted altogether, or trucks are only partially filled. This has led to an increased need to organize production and shipping to work together and maximize productivity and efficiency.
How Has the Homebuilding Industry Been Impacted?
Supply line interruptions and scarcity of building materials have made it increasingly troublesome for home builders to set and adhere to a building deadline. Lumber prices have nearly tripled and any materials that have been ordered are taking months to arrive. If items are damaged during shipping or installation, the building process is further delayed.
Changes that are made during the building process can cause even more delays since new materials must be ordered. The construction companies have little control over when the supplies will arrive and are forced to do the best they can. If you request anything that is out of the ordinary, you should expect the building schedule to be extended. Some of the most difficult items to find are paned windows, home appliances, concrete, and bathtubs.
What Is Being Done to Resolve These Issues?
The National Association of Home Builders (NAHB) is working together with lumber producers, Congress, and the White House. They are finding ways to resolve the supply problem for building materials and reduce prices by making these materials more readily available. The NAHB has also begun talks with Canadian officials to negotiate an agreement on softwood lumber and an end to tariffs.
Homebuilders advise customers to continue to have patience and understanding. They are working hard to keep up with demand to the best of their ability while searching for stable solutions to these problems.
Are you in the market for a custom-built home? Take the first step today by contacting Gallery Homes online, or call (386) 260-2378 today to get answers to your questions and discuss your home building options.