flexiblefullpage - default
Currently Reading

Supply-Chain Issues Are Causing New Owners to Move Into Unfinished Homes

Manufacturers + Suppliers

Supply-Chain Issues Are Causing New Owners to Move Into Unfinished Homes

Homeowners are deciding that some design features just aren’t worth the wait as supply-chain backlogs halt home construction


January 11, 2022
unfinished home
Image: Stock.adobe.com

Supply-chain backlogs and shortages across the nation are slowing new home construction, and in some cases, leaving projects unfinished. According to Realtor.com, pandemic-related factory closures, transportation delays, and port-capacity limits are to blame, but many unforeseen disruptions are further straining customer-supplier relationships and wreaking havoc on new construction.

Freezing weather, power outages, flooding, and wildfires are slowing the production of some building materials, leading to major price increases and delivery delays. A shortage of skilled labor is also leaving work crews without the necessary assistance to complete new construction projects. As a result, some new homeowners are scratching their original design plans, and others are moving into homes without garage doors, gutters, or other key features.

While supply-chain delays for some products showed signs of easing at the end of last year, builders say it is still taking weeks longer than normal to finish homes. About 90% of home builders surveyed by housing-market research firm Zonda in November said they were experiencing supply disruptions, up from 75% in January 2021.

Delivery delays can cause a domino effect of rescheduling work crews, which is worsened by a shortage of skilled tradespeople in many markets.

Many builders so far have been able to pass increased material costs along to home buyers. But with home prices higher than ever—the median price of a newly built home in November rose 18.8% from a year earlier to a record $416,900—some builders are concerned about pricing out potential buyers.

Read more

Related Stories

NAHB

NAHB Chairman’s Message: Biden Housing Plan Falls Short

While the Biden administration’s Housing Supply Action Plan pushes housing affordability to the top of the nation’s economic agenda, it lacks adequate supply chain solutions and fails to resolve other underlying challenges constraining housing production

New-Construction Projects

Despite Rising Costs, Home Builders Are Keeping a Steady Pace

Supply chain bottlenecks and inflated materials prices have become status quo for home builders throughout the pandemic, but that isn't slowing the pace of new housing construction

Building Materials

As Materials Prices Rise, One Phoenix-Based Company Is Building Homes With Foam

Rather than waiting for long-delayed lumber imports or turning to a short supply of pricey materials, Phoenix-based Strata International Group is building houses with foam 

Advertisement
boombox1 -
Advertisement
native1 - default

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.