The monthly National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reveals the cost and availability of labor remains the biggest hurdle for builders, and is expected to continue as a problem throughout this year. During the Great Recession tradespeople left the industry by the thousands because jobs were not available. Many found work as truck drivers.
According to builderonline, NAHB’s staffer Ashok Chaluvadi tells MHProNews, “In 2013, 53% of builders rated labor as a significant problem, followed by 61% in 2014 and 71% in 2015. An expected skilled labor shortage can constrain an improving housing market.” 76 percent of builders anticipate the problem will carry over through 2016.
The second problem on builders’ minds is the cost and availability of developed lots. In 2013, this was rated as a significant problem by 46 percent of the contractors who responded to the survey. That grew to 55 percent in 2014 and three more percentage points to 58 percent in 2015. That share rose to 59 percent in 2016.
The lack of available skilled workers and buildable lots could spell trouble for the single-family housing market going forward. ##
(Image credit: National Association of Home Builders)
Article submitted by Matthew J. Silver to Daily Business News-MHProNews.