Construction Material Delays Lead to High Demand and Soaring Costs
If you’ve been considering building your new dream home in Cape Coral, be prepared to wait a bit. That’s because construction materials are in short supply these days – and the problem’s been getting worse for some time.
Many Reasons, No Easy Solution
The industry has been caught in an imperfect storm when it comes to getting the materials needed to build new homes. You see, prolonged manufacturing shutdowns have combined with a supply chain shortage, and rising tariffs on imported softwood lumber have left builders scrambling to find building supplies. Add in a labor market beset by both retiring workers and a lack of skilled laborers, and homeowners are faced with an extended time frame when it comes to seeing their home completed.
Even worse, prices are rapidly escalating. For example, lumber prices nearly tripled between last August and January, according to a study from the National Association of Homebuilders (NAHB). The organization estimates that led to the price of an average new single-family home climbed by more than $18,600 while the market value of a typical new multi-family home rose by $7,300.
Here are some sobering statistics to support our concerns:
- The price of framing lumber increased 167% over the last four months of 2021, according to Random Lengths, an information center for the wood and products industry.
- The CEO of Tata Steel, T.V. Narendran, informed CNBC that steel prices are expected to climb above $600 per ton in future years NAHB says that in 2021, more than 90% of builders reported delays and materials shortages.
Acting Now May Save You Thousands in the Long Run
With inflation a legitimate concern and interest rate hikes on the horizon, this may not seem like the best time to plan your new home. We disagree. As long as you’re prepared for potential delays and build some cushion in your budget, this is the right time to build. That’s because experts believe it may take between three and five years to recover from the current supply and labor issues completely. By then, who knows how high interest rates will have climbed, or how expensive materials will be?
We invite you to contact us to discuss what you’re looking for in your next home. We’ll gladly go over our many premium floorplans to find the one that best fits your Florida lifestyle. We are Cape Coral’s top new home construction company, and we look forward to helping you find the solution for which you’re looking!