A labor shortage for home builders is causing late deliveries of new homes according to the National Association of Home Builders. Late completions, rising prices and lack of service after the sale are all being blamed, at least in part, on a shortage of workers in the home building trade.
“The incidence of reported shortages is now surprisingly high relative to the current state of new-home construction,” according to NAHB economist Paul Emrath.
Almost two-thirds of builders report paying higher wages due to labor shortages. Almost the same percentage say they have had to raise prices as well. Builders report an increase of 2.9% in direct labor costs in the last 6 months and a 3.8% increase in subcontractor costs.
The bottom line is new home buyers may have their patience tried.