May 27, 2018

This Has Homebuilders the Most Worried

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This Has Homebuilders the Most Worried

The cost and availability of labor is the top challenge homebuilders expect to face this year – an issue that has been growing in concern over the past three years, according to the latest National Association of Home Builders and Wells Fargo Housing Market Index.

Read more: Builders Tweak Home Features to Lure Buyers

“An expected skilled labor shortage can constrain an improving housing market,” according to the builder’s tradegroup.

Seventy-six percent of builders recently surveyed say that the cost and availability of labor will be a growing problem in their businesses this year. For comparison, in 2013, 53 percent of builders cited labor as a significant problem.

The following are the top 10 “significant problems” builders say they expect to face in 2016:

  1. Cost/availability of labor: 76%
  2. Cost/availability of developed lots: 59%
  3. Federal environmental regulations and policies: 57%
  4. Building material prices: 56%
  5. Impact/hook-up/inspection or other fees: 55%
  6. Concern about employment/economic situation: 55%
  7. Regulation of banking/financial institutions: 53%
  8. Gridlock/uncertainty in Washington making buyers cautious: 53%
  9. Local/state environmental regulations and policies: 49%
  10. Inaccurate appraisals: 48%

Source: “Labor Is Top Challenge for Builders,” National Association of Home Builders’ Eye on Housing Blog (Feb. 8, 2016)