The biggest challenge facing builders in 2021 is the cost of materials, according to a survey conducted by the National Association of Home Builders (NAHB).
Nearly nine out of 10 builders, or roughly 89% who responded to the survey, expect building material prices will be their top challenge in 2021. This compares to 96% of builders who reported the issue as their top concern in 2020.
The second biggest problem builders reported is the availability of materials along with the time it takes to obtain them. This issue was cited by 78% of the respondents last year, while 80% of builders report this will be a key concern in 2021.
The high incidence of builders reporting building material problems is not surprising given the recent surge in material prices, the NAHB said.
The builder responses were from a December 2020 survey for the NAHB/Wells Fargo Housing Market Index, where builders were asked about the problems they confronted in 2020 and expect to face in 2021.
Other results of the survey include 28% of builders reporting that federal environmental regulations and policies as a significant problem in 2020 while 48% of builders expect this to be an issue in 2021.
Additionally, 21% of respondents last year reported that taxes on home builders was a problem while 41% of builders expect this will be a significant issue this year.