What Does the Product Shortage Mean For My New Home Build?
Last year, an unprecedented shortage of building supplies impacted home builders in Central Ohio and the rest of the country.
Naturally, this had a significant impact on the real estate market. If you already owned a home, then the shortage of supplies shouldn’t have impacted you, unless you were renovating. However, these supply chain issues have made it more challenging than ever for the home building industry to operate effectively.
In essence, we’re in a situation when there aren’t enough materials to follow through with new home construction. If you’ve recently purchased a property that’s being built, you may be asking yourself: what does the product shortage mean for my new home build in Columbus, Ohio? In this post, we’ll answer this question and explain what will likely happen now and in the future.
Why Is There A Shortage Of Construction Supplies?
The housing market started suffering from shortages in building materials in 2021. From small towns to megacities, the impact has been significant. Even housing experts who have been in this business for decades were stunned to see this happen. Essentially, the problems all stem from supply chain issues.
When new single-family homes are built, the builders will look to bring in materials from various suppliers, often getting things like Canadian lumber and other materials from different countries. When there are problems or restrictions in these countries, it leads to massive supply chain delays.
Unfortunately, there have been numerous factors over the last twelve months that have led to this shortage. Forbes notes that supply shortages stem from many disruptions, including port congestion in Asia and the US, and labor shortages at factories around the country. You can even point to bad weather and storms that have slowed the production of some materials in different parts of the United States.
Of course, there’s also the pandemic effect, primarily responsible for labor shortages. Some workers have had to call out sick with COVID, while others have abandoned work sites in order to isolate themselves. Hence, companies have fewer workers at their factories – and some factories may temporarily shut down if many people contract the virus at once.
Not only that, but the pandemic also brought about a demand for new single-family homes. More new home projects have been put forward in the past two years. So, we’re in a tricky situation where there’s a massive demand for new homes in Central Ohio but only a finite amount of resources. There aren’t enough materials to go around; hence the shortage is compounded even more.
What Materials Are Currently Affected?
The following materials have been affected the most:
Lumber: Naturally, most homes are built from lumber joists and beams that frame the building. Unfortunately, storms and the rise in demand for residential construction have meant a massive lumber shortage in the US right now along with a corresponding spike in lumber prices.
Roofing materials: Similarly, storms in Texas had a significant impact on the manufacturing of roofing materials. As a result, it is more complicated than ever to get your hands on roofing materials necessary for both new home construction as well as existing homes.
Plumbing & electrical materials: Supply chain issues impacting suppliers worldwide have meant that it is very challenging to find high-quality materials for plumbing fixtures and electrical components needed to run major systems in the home.
Steel: We’ve also seen a decrease in steel production because of factories hit by storms and the transportation issues in other countries.
All of these materials are essential when building a brand new house. But, one particular area of the home seems to be affected more than most. The NY Times writes that many new home construction projects are partially finished. Many new homes are missing a garage door because the materials needed to manufacture garage doors are in deficient supply. Furthermore, garage doors are often one of the last things to be put in place when building a home. So, many first-time homebuyers have new properties that are almost complete, but they have a massive hole in the front of their garage.
When Will The Shortage End?
Unfortunately, no one knows when this shortage will end. There are ongoing issues with global shipping and supply chains – and the pandemic is still an ongoing concern around the world right now. It’s doubtful that we will see any significant improvements in the next few months, and it could continue well into 2022.
What Does The Product Shortage Mean For New Homes?
There’s no denying that home builders are affected by this continuing crisis. As a result, it means that residential construction in Central Ohio is delayed more than usual. If you have already purchased a home, but it has yet to be completed, you will have to wait much longer for the final product to be unveiled because it is tough for contractors and home builders to get their hands on the necessary materials.
Furthermore, there is a chance that home prices will continue to go up. Why would this happen? The cost of building products is currently at an all-time high due to the massive demand for materials and supplies, with not enough of them to go around. You don’t need to be a chief economist to understand that the price will always go up when the demand increases and the supply decreases.
What Is The Construction Industry Doing To Combat The Shortage?
The bright spot in all of this is that companies are doing everything they can to ensure new home builds aren’t grinding to a halt. One key thing they’re doing is searching for alternative suppliers. Which is easier said than done, but many building companies are turning their attention away from overseas suppliers where possible.
The supply chain shortages caused by other countries mean that businesses are looking for more community-based local suppliers instead. Again, this can mean that the cost of supplies goes up, but it should help speed up the building process and ensure that new houses aren’t pushed back by months.
Moreover, some housing development companies have started exploring technologies to find new materials to construct homes. Instead of relying on the typical materials in short supply, they’re looking for new and innovative products and ideas.
The risk with this is that you don’t always find materials as effective as the tried and trusted versions. Also, new technologies and alternative building materials can take time to come to market, and the cost of these new technologies is always a factor.
Right now, there’s a lot of head-scratching going on, but a lot of work is happening behind the scenes to try and speed up processes and get houses built quickly without compromising the quality of the build.
Should You Be Worried About Your New Build?
You shouldn’t stress or be worried if your home is currently under construction. Yes, it can be frustrating to know that you’ll have to wait longer before moving in, but given the current real estate market conditions and supply chain impacts, you must expect to wait just a little longer to move into your dream home.
The best thing to do is to contact the property developers and builders responsible for constructing your home. Talk to them about the product shortage and what it might mean for your home. See if they have any ideas or plans in place to combat construction delays and if they can provide you with an updated timeline.
It’s normal to be frustrated and annoyed, but you have to accept that this is the current situation in the housing market. The product shortage came out of nowhere, and there wasn’t anything anyone could do to prevent it.
Is It Worth Buying A New Build Right Now?
Despite the shortages, it is still a good idea to invest in a new build if you’re looking for a brand new property. If anything, it’s better to do things sooner than later. If the shortage continues, housing prices in Central Ohio will keep going up. So, if you can lock in a new property build now, you might save money.
Of course, you need to be aware that things might take longer to be built than they would have just a couple of years ago. So plan things differently and wait to move out of your current home until the time is right.
In summary, the product shortage will mean that delays are expected for new builds now and in the future. The price of materials is also increasing, which means home prices may also rise. However, you can still purchase a new house if you want to. Just make sure you work with a high-quality home builder that’s transparent about everything and keeps you well informed.