As we enter the first part of 2023, the home building industry is facing a number of challenges that are making it increasingly difficult to construct new homes at a reasonable cost. One of the biggest issues is the high price of lumber, which is currently at an all-time high. This is due to a variety of factors, including a lack of available timber, increased demand from countries like China, and a strong US dollar that is making it more expensive to import lumber from other countries.
The high price of lumber is having a significant impact on home builders, as it is increasing the cost of construction significantly. This is particularly true for smaller builders who may not have the financial resources to absorb these higher costs. In addition, the rising cost of labor is also adding to the challenges faced by builders. With a lack of skilled workers available, it is becoming more and more difficult to find the labor needed to complete projects on time and on budget.
The combination of high lumber prices and rising labor costs is putting a strain on the home building industry, and it is likely that these challenges will continue to affect builders in 2022. This will likely result in higher home prices, as builders are forced to pass on these higher costs to consumers. It could also lead to a slowdown in construction, as builders struggle to find the resources needed to complete projects.
Overall, the current state of the home building industry is concerning, and it is clear that something needs to be done to address the challenges faced by builders. Whether this means finding new sources of lumber, training more skilled workers, or finding other ways to reduce costs, it is clear that action needs to be taken to ensure that the home building industry can continue to thrive in the years ahead.