Buckle Up, Material Shortage Likely to Remain Throughout 2022

It's not a surprise that 2021's supply-chain issues included limiting the amount of available material for builders. According to the NAHB/Wells Fargo Housing Market Index, it was a predominant issue for the industry, and most builders expect to see the same throughout 2022.

Of the top 10 significant problems faced in 2021, most (96%) builders ranked building material prices as the most predominant.

SIGNIFICANT BUILDING INDUSTRY PROBLEMS IN 2021

However just as prevalent is the lack of material availability, and/or the amount of time it takes to obtain them. The majority (91%) of builders listed that as their second biggest problem in 2021.

It also appears that most builders don't see these issues going away anytime soon—91% of builders expect prices to remain high, and 90% of builders anticipate material delays and shortages in 2022.

However, the shortage of talent/labor in the industry has also been a major concern as of late, and the data reflects this. Over 80% of builders have had issues with the cost or availability of labor in 2021, and only see the problem expanding into this new year.

Other concerns from builders include inflation, zoning permit issues, inspection fees, and environmental policies.

The NAHB/Wells Fargo data also shows the trend with the shortage of building materials over the years. Since 2011, the percentage of builders who have encountered these issues has increased by 63%.

To read more on the shortage of building materials, and to view the Housing Market Index (HMI) in its entirety, visit the NAHB's website. For a full breakdown of the findings, read this Eye on Housing post by NAHB Senior Economist Ashok Chaluvadi.

For more on research reports and supply chain issues, read it here on Utopia.