The top problem builders expect to face in 2018 is the cost and availability of labor, an issue for 82 percent of builders in 2017.
In a series of questions posed by the National Association of Home Builders, the results showed that the second most significant problem in 2017 was building material prices, affecting 77 percent of builders. In 2011, building material prices were rated significant by 33 percent of builders who responded to the survey. That share increased fifteen points to 48 percent in 2016, and showed the largest increase between builders noting it was a problem in 2016 and 2017.
The two issues builders expect to become more significant problems in 2018 are Attempts to limit mortgage interest deduction/other support for housing (49 percent expect it to be a problem in 2018 vs. 31 percent who said it was a problem in 2017) and High interest rates. Although the share who expect high interest rates to be a problem in 2018 is still relatively low at 18 percent, this is up strongly from the 4 percent in 2017.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
