Builder concerns unveiled

There's been a change at the top of the list of top concerns for builders.

According to results from a Morgan Stanley/HomeSphere survey of builders conducted in December, the top biggest concert for 2016 is the rise in cost of building materials, cited by 48% of respondents.

The concern over LBM material took the top spot from "home building labor shortage," which fell to second with 40% of respondents.

Results from the survey, shared during a recent webinar hosted by Morgan Stanley and HomeSphere are:

• 
  Rising costs of building materials, 48%;


• 
  Home building labor shortage, 40%;


• 
  Lackluster job creation and income growth, 35%;


• 
  Higher interest rates, 31%;


• 
  Rising cost of land, 29%;


• 
  Stagnant approval process, 26%;


• 
  Tight mortgage underwriting conditions, 25%;


• 
  Tight financing, 16%;


• 
  Lack of first-time home buyers, 13%;


• 
  Rapid rise in home prices, 11%;


• 
  Limited new home inventory, 3%.

Also in the realm of labor shortages, builders are increasingly concerned not only with longer build times, but also lower gross margins due to higher labor costs.