Nearly a third of home building material inputs come from China, according to the National Association of Home Builders.
Not to mention more finished products like bathtubs, sinks, appliances, and more, also come from China. These supply lines have been disrupted and we will feel this more heavily once inventories are shallow. The lack of supplies will delay home construction at a time when it has finally picked back up to address the housing shortages. Since the financial crisis, home building has struggled to keep pace with demand because of the cost of construction, lack of available land, and construction labor.
The home builder confidence has skyrocketed in recent months, according to the NAHB. This tells us that builders are more inclined to start construction on homes. New home sales have increased, mostly because it is linked to the volume of new homes being built and there has been an extensive amount of construction starts as well. Reduced access to supplies will slow the pace of construction. This also will cause the housing shortage to span a longer duration, making it mostly a seller market.
“Low-interest rates help support demand, and consumer confidence readings in the coming months will be key, but the virus does heighten some of the longer-term challenges on the supply side in terms of housing supply,” says Robert Dietz, an economist with NAHB.
If you were interested in building a home, we recommend selecting a home located in a pre-established development that has been plotted because much of the regulatory process is completed and construction could begin in a quicker timeframe. Connect with us today to get started on building a new construction home for you and your family, 307-635-0303 or online at cheyennehomestore.com.