Despite continued supply chain woes and labor challenges, builder confidence remains high for a third consecutive month due to strong buyer demand and low existing inventories.
Builder sentiment in the market for newly built single-family homes moved three points higher to 83 in November, according to the most recent Housing Market Index from the National Association of Home Builders and Wells Fargo.
“The solid market for home building continued in November despite ongoing supply-side challenges,” says NAHB Chairman Chuck Fowke. “Lack of resale inventory combined with strong consumer demand continues to boost single-family home building.”
While demand is high, labor shortages and supply chain problems continue to cause delays.
“In addition to well publicized concerns over building materials and the national supply chain, labor and building lot access are key constraints for housing supply,” NAHB Chief Economist Robert Dietz says.
“Lot availability is at multidecade lows and the construction industry currently has more than 330,000 open positions. Policymakers need to focus on resolving these issues to help builders produce more housing to meet strong market demand.”
An October 2021 survey found more than 55% of single-family builders reported a shortage of labor across 16 home-building trades, with the greatest shortage noted among carpentry trades (rough, finished and framing crews).
In Chattanooga, builders also continue to face supply chain and labor shortages amid high demand.
Home Builders Association of Greater Chattanooga Executive Officer Doug Fisher says, “Our builder developers are very busy. Fighting inflation, labor shortage and supply chain issues are the biggest challenges we face in the Tennessee Valley. We hope these issues will moderate in 2022.
“With interest rates still low, now continues to be a great time to build.”
The HBAGC is here to support our area building industry as well as local consumers. For more information on joining the HBAGC or to find a trusted HBAGC building member, visit www.HBAGC.net.