Very like final yr, the value and availability of constructing supplies topped the checklist of issues builders face. Based on particular questions on the December 2021 survey for the NAHB/Wells Fargo Housing Market Index, constructing materials costs had been a major problem for 96% of builders in 2021, and 91% of the builders count on it to proceed being an issue in 2022. The second most widespread downside in 2021 was availability/time it takes to acquire constructing supplies cited by 91% of builders. In 2022, the share of builders anticipating availability/time it takes to acquire constructing supplies is predicted to be 90%. The excessive incidence of builders reporting constructing materials issues isn’t a surprise given current will increase in materials costs.
In 2011, constructing supplies costs was reported as a major downside by 33% of builders, adopted by 46% in 2012, 68% in 2013, 58% in 2014, 42% in 2015, 48% in 2016 and 77% in 2017, 87% in 2018, and 66% in 2019 earlier than peaking at 96% in each 2020 and 2021.
In the meantime the value and availability of labor was reported as a major downside by solely 13% of builders in 2011. The share elevated to 30% in 2012, 53% in 2013, 61% in 2014, 71% in 2015, 78% in 2016, 82% in each 2017 and 2018, 87% in 2019 and 65% in 2020. Whereas 82% stated it was downside in 2021, 85% count on it to proceed being an issue in 2022. Once more, this end result isn’t a surprise given the big variety of unfilled job openings within the development trade.
In comparison with 2021 builders count on among the issues to change into worse in 2022. Rising inflation in US economic system was important downside for builders in 2021 and 2022. Whereas the share was 63% in 2021, it’s anticipated to extend considerably to 90% in 2022. Federal environmental rules and insurance policies was a major downside for 37% of builders in 2021, in comparison with 52% who anticipated it to be a problem in 2022. Gridlock/uncertainty in Washington making consumers cautious was a major downside for 32% of builders in 2021, however 50% count on it to be an issue in 2022. Concern about employment/financial state of affairs was an issue for twenty-four% of builders in 2021, however 46% count on it to be an issue in 2022. Whereas Taxes on dwelling builders was an issue for 23% of builders in 2021, it is going to be important downside in 2022 for 43% of builders. High interest rates was an issue for under 2% of builders in 2021, however 31% of builders count on it to be a major downside in 2022. Makes an attempt to restrict mortgage curiosity deduction/different was an issue for 12% of builders in 2021, however 30% count on it to be an issue in 2022.