Is a building materials shortage lurking?
While the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) revealed a drop-off in builder confidence, research behind the index has discovered another threat.
Compounding a labor shortage, lack of existing homes, rising regulatory costs, a lack of building materials could be the next front that impacts home builders.
According to the NAHB, more than 30% of single-family home builder respondents to the index’s survey reported a shortage of framing lumber. Additionally, about 24% reported a shortage of trusses.
Other material leaders on the list included steel studs and OSB, at 20%, and a plywood shortage reported by 19% of survey respondents.
The May 2018 reading of 31% is the highest shortage percentage for framing lumber since the NAHB incorporated the question into its HMI survey in September 1994. The second highest was 24% recorded in October 2004, the NAHB said.
In the June HMI, Builder confidence in the market for newly-built single-family homes fell two points to 68. The NAHB attributes the decline to elevated lumber prices.
Compounding a labor shortage, lack of existing homes, rising regulatory costs, a lack of building materials could be the next front that impacts home builders.
According to the NAHB, more than 30% of single-family home builder respondents to the index’s survey reported a shortage of framing lumber. Additionally, about 24% reported a shortage of trusses.
Other material leaders on the list included steel studs and OSB, at 20%, and a plywood shortage reported by 19% of survey respondents.
The May 2018 reading of 31% is the highest shortage percentage for framing lumber since the NAHB incorporated the question into its HMI survey in September 1994. The second highest was 24% recorded in October 2004, the NAHB said.
In the June HMI, Builder confidence in the market for newly-built single-family homes fell two points to 68. The NAHB attributes the decline to elevated lumber prices.