Since the supply of homes available for sale, today is so low buyers are willing to consider different options. You may be trying to decide whether you want to buy a home that’s already on the market, or build a new one. While homebuilders are doing everything, they can to construct more houses and help narrow the supply shortage, they’re also facing delays due to factors outside of their control.
There are a couple of key challenges homebuilders are experiencing today and how they could impact plans to build a home. Understanding what Is happening in the industry will help you make an informed decision on whether to look for a newly built or an existing home during your home search.
Supply Chain Issues
The first hurdle builders are dealing with is the lack of supply of various building materials. According to a recent article from HousingWire:
“Nearly everything needed in the homebuilding process is facing some sort of delay and subsequent price increase”
The supply chain impacted includes, roofing materials, windows, garage doors, siding, and gypsum which is used for drywall.
The difficulty in getting these items is dragging out timelines for new homes as builders wait on what they need to finish construction. Since materials are in short supply, even when they do get the product, the principal of supply and demand is driving prices up for those goods.
Skilled Labor Shortage
That is not the only challenge with new home construction today. Builders are also having a hard time finding skilled labor, which means they’re short-handed, further dragging out their timelines. The supply of workers continues to fall short of demand, but the underlying momentum of the labor market recovery is strong, and falling COVID case counts provide further forward momentum. While finding workers continues to be challenging for builders, there are signs of positive momentum moving forward.
When you decide between building a home or buying an existing one, factor the potential delay in new home construction into your decision. Consider your timeline when making the decision, understand the latest market conditions when making the best decision possible.
