According to the National Association of Home Builders (NAHB) and the Wells Fargo Housing Market Index, a significant issue for 96% of builders in 2021 was the price of building materials. 91% of these builders also expect it to continue being a problem throughout 2022.
Another predominant issue for a large majority of builders was the availability of building materials as well as the time it takes to obtain those materials. As many as 90% expect this to remain a predominant issue in 2022. The high number of builders reporting building material issues is not shocking given recent increases in material prices.
The availability and cost of labor is another significant problem reported by many builders. This issue is another problem that builders expect to continue in 2022. There is currently a large number of unfilled job openings in the construction industry contributing to the issue.
There are several other issues that builders are facing as 2022 progresses including rising inflation in the US economy, concern about employment and/or economic situations, federal environmental regulations and policies, taxes on home builders, high interest rates, attempts to limit mortgage interest deduction and political uncertainty making buyers cautious.