Currently Reading

The War in Ukraine Is Widening a Supply Chain Crisis for Home Builders

Advertisement
Manufacturers + Suppliers

The War in Ukraine Is Widening a Supply Chain Crisis for Home Builders

Home builders across the U.S. are feeling the aftershock of Russia’s invasion of Ukraine as material prices rise to unprecedented highs


April 4, 2022
Cargo ships at sea
Image: Stock.adobe.com

After two years of frequent and frustrating supply chain disruptions slowing new home construction across the U.S., the Russia-Ukraine conflict is creating yet another obstacle for home builders. As prices for commodities like steel and diesel see double-digit year-over-year increases, home building is becoming more costly than ever before, CNN Business reports.

Meanwhile, an unrelenting seller’s market is sustaining heated competition and causing year-over-year home price gains of more than 32%, further fueling demand and creating a sense of urgency for stalled builders struggling to keep up.

Most of the materials and commodities the construction industry depends upon are seeing double-digit year-over-year cost increases, with steel and diesel seeing some of the largest gains, at nearly 75% and nearly 58%, respectively, according to the Associated General Contractors of America's analysis of February Producer Price Index data.

Higher oil and commodity costs spill over to myriad areas in the construction supply chain, and some effects are more immediate than others: Gasoline is needed to feed earth movers, haul supplies and transport workers to job sites; petroleum serves as a building block in critical materials, like asphalt, steel, glues, pipes and paints; and growing everyday expenses could further hamper people's ability to spend.

Read more

Related Stories

Manufacturers + Suppliers

Home Builders Are Feeling the Supply Chain Aftershock of the Russia-Ukraine Conflict

The war in Ukraine is cutting off essential commodities and leaving builders to contend with backed up supply chains

 

Building Materials

Lumber Prices Drop as Elevated Mortgage Rates Cool Housing Demand

The 30-year fixed mortgage rate crossed a crucial 5% threshold at the start of April, and prices for building materials like lumber are beginning to decline

Building Materials

Some Builders Are Relying on Natural Materials to Bypass a Stalled Supply Chain

Prices and lead times for traditional building materials continue to increase across the globe, but natural products and alternative construction methods may offer a solution

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.