Supply chain issues are slowing new home construction and driving prices to a record high

Supply chain issues prevent the construction of houses. (Getty)

It takes a lot of moving parts to build a house, and right now a lot of those parts just aren’t moving.

The Wall Street Journal reports that supply chain backlogs are causing massive delays in new home construction across the country and driving prices to record highs, even as some buyers move into unfinished abodes or have to decide the style of brick to be used. several times until one that is available is found.

In fact, garage doors became so rare in Sacramento, Calif., late last year that government officials began allowing builders to enclose homes with temporary covers.

Meanwhile, price increases caused by inflation and delays sent the cost of a newly built home soaring to a record $416,900 in November – up nearly 19% from the year previous according to the publication – and builders are worried about charging potential owners. of the market.

According to housing market research firm Zonda, 90% of homebuilders surveyed in November said the supply disruption affected them, causing a ripple effect in rescheduling crews already decimated by a shortage of skilled workers.

To catch up, builders have been rushing to find new suppliers, using substitute materials, stocking up on needed supplies, and even heading to their local Lowes or Home Depot to find things they don’t. couldn’t get by normal means.

“Week to week, the only thing we know is that we’re going to be notified of something else that’s not available,” Stew Walker, vice president of the newspaper, told the newspaper. builder Epcon Communities in Dublin, Ohio.

Builders have also started selling homes later in the construction process, so as not to cut prices when costs can change at short notice, and offer fewer options and limit floor designs, according to the publication. .

Delays in closing dates can then affect buyers, who can be locked into a low rate that expires — and then rises — by the time the home is ready to move in.

[Wall Street Journal] — Vince DiMiceli