Currently Reading

What Are the Top Challenges Builders Faced in 2019 and Expect in 2020?

Advertisement

What Are the Top Challenges Builders Faced in 2019 and Expect in 2020?


February 10, 2020
Construction labor shortage
By auremar

If you were a builder in 2019, this shouldn’t come as a surprise: The cost and availability of labor were the greatest challenges faced by builders last year. And that problem is not going anywhere anytime soon, according to a survey for the NAHB/Wells Fargo Housing Market Index. But the labor shortage isn’t the only thing on builders’ minds. The cost of lots and building materials and negative media were also challenges builders expect for the coming year. Even as the market heats up and the industry continues to recover, being a successful builder takes careful planning to address these barriers.

Cost and availability of labor topped the list of problems builders faced in 2019, and is expected to return to the number one spot in 2020, according to special questions on the December survey for the NAHB/Wells Fargo Housing Market Index.   The survey results showed that cost and availability of labor were a significant issue for 87% of builders last year. In 2020, however, a slightly smaller share – 85% of the builders – expect them to continue being a problem. The second most widespread problem in 2019 was building materials cited by 66% of builders. Unlike cost and availability of labor, the share of builders expecting building materials to be a problem this year is the same as share reporting it a problem last year.

In 2011, cost and availability of labor was reported as a significant problem by only 13% of builders. The  share increased to 30% in 2012, 53% in 2013, 61% in 2014, 71% in 2015, 78% in 2016, 82% in both 2017 and 2018, before peaking at 87% in 2019. Meanwhile building materials prices was reported as a significant problem by 33% of builders in 2011, followed by 46% in 2012, 68% in 2013, 58% in 2014, 42% in 2015, 48% in 2016 and 77% in 2017, 87% in 2018 and 66% in 2019.

Another significant problem that builders faced in 2019, and is expected to face in 2020 is cost and availability of developed lots. In 2011, cost and availability of lots was reported as a significant problem by 21% of builders. The share increased to 34% in 2012, 46% in 2013, 55% in 2014, 58% in 2015, 60% in 2016, 58% in both 2017 and 2018, 63% in 2019 and 66% of builders expect it be a problem in 2020.

Read More

 

Related Stories

Construction

Construction Labor Market Remains Strong, Sees Reduced Turnover

Since March, the construction labor market has continued to see a strong recovery. The hiring rate for the construction sector saw its peak in May…

Construction

Residential Construction Employment Now Higher Than 2019

As unemployment dropped to 6.9% in October with the addition of 638,000 new jobs, residential construction employment also filled more vacant…

Construction

Construction Job Wages Increase at Faster Rate Than National Wages

Median wages for construction jobs continue to excel past national median wages, according to the National Association of Home Builders. The 2019…

Advertisement

More in Category




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.