10 biggest concerns Builders haveFebruary 20, 2018
Homebuilding is still falling short in many markets and failing to alleviate the shrinking inventories of homes for sale. Builders blame the construction shortfall on several factors, according to the National Association of Home Builders (NAHB) and Wells Fargo Housing Market Index:
Cost/availability of labor: 84%
Building material prices: 84%
Cost/availability of developed lots: 62%
Impact/hook up/inspection or other fees: 60%
Local/state environment regulations and policies: 45%
Inaccurate appraisals: 42%
Federal environment regulations and policies: 42%
Difficulty obtaining zoning/permit approval: 42%
Gridlock/uncertainty in Washington making buyers cautious: 42%
Development standards: 38%
The top concern for 2018 is the same as it was in 2017: Builders say their chief concern is the cost and availability of labor – and an increasing number of builders reported this as a problem. In 2017, 82 percent of builders said cost and availability of labor was their top concern, and the percentage grew to 84 percent heading in 2018.
The availability of labor started growing as a problem among builders since 2011. In 2011, just 13 percent of builders rated labor as a significant problem, but by 2012, the percentage jumped to 30 percent and has ever since continued to increase each year.
“Both the availability of labor and lots highlight the expected constraints of a recovering housing market,” NAHB reports.
Source: Florida Realtor Association “Building Materials Prices and Labor Access Top Challenges for 2018,” National Association of Home Builders’ Eye on Housing blog (Jan. 16, 2018)