What We’re Building: Jen’s 1st Quarter Review
I hope this finds you well and enjoying 2022 so far! As the world continues down the path to post-COVID norms, things in the building industry remain interesting! We continue to see downward pressure on material pricing, labor availability, and supply chain disruptions. It is ever changing and our team is doing everything we can to manage and adjust. See below for more detail on what we’re seeing!
But there is good news too! We have just opened a new model and we have a special event coming up, so be sure to read on!
Material Pricing
Good news is that indicators are pointing to a leveling out of lumber price increases. Futures have been in a downward trend over the last several weeks. While this won’t translate into market pricing for some time, we are encouraged by the trend. The question for our industry is, will it continue? We saw pricing level off and decrease for a short time in 2021, but it didn’t take long for it to shoot up again. Many lumber supply companies have been sitting on the sidelines and not buying more than needed, waiting for the price to drop. If they decide to jump and buy up a bunch of the supply, pricing could rise again. But we remain cautiously optimistic that lumber pricing will improve later this year.
On the flip side, it seems like every other material is increasing in price. We are closely monitoring cultured stone as it has almost doubled in price and is very difficult to source. Other materials like drywall and concrete are also on the rise. Never a dull moment around here!
Labor Shortage & Supply Chain Disruptions
The building industry across the country is experiencing a labor shortage, and the DC area is no exception. It is estimated that the industry needs to add about 400,000 workers nationwide to build the current inventory of homes, and only about 10% of that has actually been added to the workforce. There are so many factors that are contributing to the shortage, most notably is the fact that so much of the labor completely left the market after the 2008 housing crash, many forced out because of downsizing. Unfortunately, we just don’t have new labor (skilled or unskilled), entering the industry. Sad for me and sad for an industry that holds such opportunity for career growth (I’ve been talking about this for a long time!).
The supply chain is still a challenge across all industries. We continue to look for additional resources for building materials, but garage doors, appliances, HVAC equipment, and lumber continue to be in short supply. As I’ve said before, the one thing that will help this is a market correction. Hard to cheer for a slow down in the market, but something has to give!
NEW Winslow Model Now Open!
We have recently opened our new Winslow Model for showings every Saturday & Sunday, 12 – 4 PM both days! I love this model, especially some of the customizations we made. Get more information here!
Save The Date!
We are having a Meet The Builder on Saturday, May 21, 10 AM – 12 PM at our new Winslow Model. We will have the NDI team, a site engineer, site contractor, and a construction lender on hand to answer all of your questions. This is a great opportunity to talk to these companies all in the same place. More information to come!
Looking to build a new home on your lot in 2022? Now is the time to get started! Schedule a free consultation to learn more about our full service custom home program including excellent financing programs that lock in your permanent financing rate before construction even begins! Visit us online today!
Dream. Build. Live.