The price and availability of building materials were listed as the top problem facing builders for the second consecutive year, according to special questions on the December 2021 survey for the NAHB/Wells Fargo Housing Market Index. According to the survey, building material prices were a significant issue for 96% of builders in 2021, and 91% of builders expect it to continue being a problem in the coming year.
The second most widespread problem in 2021 was availability/time it takes to obtain building materials cited by 91% of builders. In 2022, the share of builders expecting availability/time it takes to obtain building materials is expected to be 90%. The high incidence of builders reporting building material problems is not surprising given recent increases in material prices.
In 2011, building materials prices was reported as a significant problem by 33% of builders, followed 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 before peaking at 96% in both 2020 and 2021.
Meanwhile the cost and availability of labor was reported as a significant problem by only 13% of builders in 2011. The share increased to 30% in 2012, 53% in 2013, 61% in 2014, 71% in 2015, 78% in 2016, 82% in both 2017 and 2018, 87% in 2019 and 65% in 2020. While 82% said it was problem in 2021, 85% expect it to continue being a problem in 2022. Again, this result is not surprising given the large number of unfilled job openings in the construction industry.
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