What Are the Biggest Challenges Facing Home Builders?

From high costs to an ongoing labor shortage and more, the home building industry is facing a number of challenges. To better understand what drives these challenges, Home Innovation Research Labs surveyed builders across the U.S. Their responses offer a snapshot of where builders are facing the biggest challenges and what they are doing to overcome them.

Three major challenges are pressuring the home building industry

Across the home building industry, rising prices seem to be the biggest challenge. Of those surveyed, 41% of builders say supply chain issues and price volatility are their biggest concern. This was followed by 38% of builders who identified labor shortages as the biggest challenge, and then 29% who say regulation hurdles were the biggest challenge.

What are builders doing to address these challenges?

Builders are taking steps to address the top challenges identified by survey respondents. Of those surveyed, 47% of builders say they are turning to Artificial Intelligence and other digital tools to tackle cost and labor challenges. Additionally, 31% say they’re focusing on workforce and trade training programs, and 22% say they’re focusing on regulatory and permitting reform to increase housing supply.