They say the only constant is change. And over the last year and a half, in the building industry, we’ve known this to be true. Some builders locked in prices for their clients, so that even as prices rise and fall, the price quoted to the client remains the same. Others have absorbed some costs, passed some costs on, or are somewhere in the middle. It’s important to remember we are all in this together–no matter how we are dealing with these unprecedented times.

A few months ago, we wrote a blog, Construction Lumber - Demand, Pricing and Reducing Use. While costs for most products are still high, we are starting to see some changes. However, lumber demand and prices aren’t the only issues affecting builders here in central Ohio.

So, what are we to expect in the building industry for the rest of 2021?

Shortage of workers
As home construction companies, we understand this all too well. We are all searching for skilled construction trade workers. Some of us are well staffed, but many of us are searching for qualified employees. And with that, the pool of available workers lowers and we all compete for the same people. The direct result of fewer employees–it takes us longer to get homes built, which affects our timelines and our ability to take on new projects.

Projects Are Moving Forward
This article from Cleveland Building & Construction shares the significant number of projects underway around Ohio. Columbus is leading the way with many massive projects occurring now. And the housing market continues to show no signs of slowing down. While we are still in a housing shortage, more homes were built last year than any year since 2006, says this article from The Columbus Dispatch.

According to this article from Columbus Underground, we do have the fastest selling housing market! With homes selling quickly, many people are planning on building new homes. How has this affected your build timelines?

Image by sawaeng wonglakorn from Pixabay

Lumber and Other Supplies
Lumber prices and supply has had a significant impact on builders here in Columbus. We are seeing positive changes as lumber prices are beginning to come down-slowly. Sawmills are beginning to increase production and people are returning to work (therefore not doing as many home renos and DIY projects). NAHB has been instrumental in working with the government to boost domestic lumber production, try to bring prices down and the get Canadian lumber supply lines back open, but it’s been an uphill battle so far. But as this article from NPR points out, it could take weeks or months for price reductions to take effect and prices probably won’t fall to pre-pandemic levels. But there is hope!

Iron, copper and steel tariffs are still expensive, and we know builders are trying to find ways to utilize less of it and find other ways to build homes using other products. This article from Construction Dive explains the ripple effect of these price increases. Steel for home construction (which includes studs, ductwork, beams, and some light fixtures), copper, vinyl siding, concrete, and gypsum, all continue to suffer from supply chain issues. This has continued to drive up the price, as well as the time to get supplies to the job site. Builders are looking at the use of insulating concrete forms, instead of wood framing. Structural insulated panels and steel frame construction are other framing methods utilized by some builders, hoping to keep costs down. But as we know, there are times when only iron and steel will do.

Supply changes are impacted worldwide, so many items are in short supply for home construction. You might get a home almost completed and then not be able to outfit it with kitchen appliances, windows, or other materials.

This article, from the U.S. Chamber of Commerce paints a rather dire picture (while giving us some hope), but we recognize we are luckier than most in Columbus. But if you have clients that do not understand what is happening, this might be worth having them read.

The challenge? Creating viable timelines, costs (what you pass on and what you absorb), waiting for prices to go down, finding skilled workers, and keeping your clients happy! What is working for you? What can we all learn from one another?

In Other News:

2019 BIA Parade of Homes, SIerra Custom Homes

BIA Parade of Homes
In case you haven’t heard, it is back! Are you participating or just going to see what others have been up to this year? There is still time for your home to be featured as an on-line Virtual entry. Click here!

At RDS, our designers are here and ready to help you create the home construction design your clients are asking for. Give us a call and let’s work together!