Currently Reading

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

Advertisement
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

Building Materials

4 Key Steps Home Builders Can Take To Minimize Lumber Costs in 2022

By ordering efficiently and making the proper preparations, builders can stay one step ahead of fluctuating lumber prices in the new year

NAHB

U.S. Sawmill Production Fails to Keep Pace With Housing Demand for Lumber

NAHB Policy Brief | Insufficient production is causing an unprecedented spike in lumber prices as sawmill output fails to keep up with consumer demand and housing starts outpace lumber production

Environmental

Climate Change Threatens Lumber Production as Prices Reach a New Peak

When it comes to lumber prices, the detrimental implications of climate change may outweigh even the heavy hand of the coronavirus

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

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.