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131. The State Of Home Building - My Opinion On Where We Are And Where I Think We Will Be
In this episode of The Real Build, I talk about the state of the home building industry and where I think it will go. I talked about how we continue to face material increases, supply chain disruptions, and labor shortages. As these things may not completely disappear in 2022, there is optimism that things may ease.
We continue to face a lack of labor force nationally in construction. It has been hard for us to find employees along with our subcontractors.
Home prices continue to rise with rent forcing workers to find more affordable housing. But higher inflation may push people back into the labor market. It also costs our subcontractors and us more money to keep our current employees.
Material prices continue to stay elevated, and I think we continue to see fluctuation. Experts are predicting prices to decrease in the second half of the year. In 2021 we saw almost a 14.5% increase in material cost.
There are shortages and long lead times around 18 to 24 weeks for many types of building products like appliances, cabinets, flooring, tubs, light fixtures, electrical, windows, slab doors, garage doors, I-joists, HVAC compressors, adhesives, paint, drywall, and PVC.
To help with supply problems, home builders are limiting plan offerings and customer selections. They’re requesting that Many customers make selections upfront and pick backup choices.
Builders began 2022 with large backlogs and runaway cost increases. To cover those costs and slow sales to reduce their backlogs, builders aggressively increased sales prices.
Is a crash coming?
I hear this a lot. People are saying they will wait for a market correction or crash. 2008 rocked the real estate market - But lending is much stricter now. Demand will remain strong. I don’t think we will slow down anytime soon.
My main concern, like every builder, is solving the supply chain issues and controlling inflation.
Host Info
Email: [email protected]
CONNECT WITH ME ON SOCIAL MEDIA:
▶︎ YOUTUBE | https://www.youtube.com/channel/UCxAdSxHN0dIXZPhA-6p1HYA
▶︎ INSTAGRAM | https://www.instagram.com/imbillreiman
▶︎FACEBOOK| https://www.facebook.com/billy.reiman
▶︎ LINKEDIN | https://www.linkedin.com/in/bill-reim...
▶︎ TWITTER | https://twitter.com/ImBillReiman
▶︎ WEBSITE | https://www.rkreiman.com
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By Bill Reiman | @ImBillReiman
4.9
6767 ratings
In this episode of The Real Build, I talk about the state of the home building industry and where I think it will go. I talked about how we continue to face material increases, supply chain disruptions, and labor shortages. As these things may not completely disappear in 2022, there is optimism that things may ease.
We continue to face a lack of labor force nationally in construction. It has been hard for us to find employees along with our subcontractors.
Home prices continue to rise with rent forcing workers to find more affordable housing. But higher inflation may push people back into the labor market. It also costs our subcontractors and us more money to keep our current employees.
Material prices continue to stay elevated, and I think we continue to see fluctuation. Experts are predicting prices to decrease in the second half of the year. In 2021 we saw almost a 14.5% increase in material cost.
There are shortages and long lead times around 18 to 24 weeks for many types of building products like appliances, cabinets, flooring, tubs, light fixtures, electrical, windows, slab doors, garage doors, I-joists, HVAC compressors, adhesives, paint, drywall, and PVC.
To help with supply problems, home builders are limiting plan offerings and customer selections. They’re requesting that Many customers make selections upfront and pick backup choices.
Builders began 2022 with large backlogs and runaway cost increases. To cover those costs and slow sales to reduce their backlogs, builders aggressively increased sales prices.
Is a crash coming?
I hear this a lot. People are saying they will wait for a market correction or crash. 2008 rocked the real estate market - But lending is much stricter now. Demand will remain strong. I don’t think we will slow down anytime soon.
My main concern, like every builder, is solving the supply chain issues and controlling inflation.
Host Info
Email: [email protected]
CONNECT WITH ME ON SOCIAL MEDIA:
▶︎ YOUTUBE | https://www.youtube.com/channel/UCxAdSxHN0dIXZPhA-6p1HYA
▶︎ INSTAGRAM | https://www.instagram.com/imbillreiman
▶︎FACEBOOK| https://www.facebook.com/billy.reiman
▶︎ LINKEDIN | https://www.linkedin.com/in/bill-reim...
▶︎ TWITTER | https://twitter.com/ImBillReiman
▶︎ WEBSITE | https://www.rkreiman.com
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