Challenges in New Home Construction May 18, 2022

We all know the supply of homes is very low.  We need housing.  So contractors have been extremely busy the last few years.  In fact, most contractors I have talked to will say they aren’t even taking new projects.  They are booked out for at least 2 years.

More housing permits are being filed for than ever before.  Permit applications are up and housing starts are also up.  However, there is another report that shows housing completions and that is troubling.  The number of housing completions remains stagnant.  So, more houses are being started every month, but the same number of houses are being completed as before.  Thus, it is taking longer and longer to build a home.

Why?  Well, there are a myriad of reasons, but certainly supply chain issues and lack of labor top the list.