Explosive growth and success in our region doesn’t come without challenges, particularly in the area of new construction. Please see below for a special report from our partners at the Huntsville Madison County Builders Association:
There are several factors that are leading to delayed closings and increased pricing for new home construction across our area. Some of these factors will probably change by the end of the year, but they are hitting our area because of the construction surge.
- The average home price increase for their lumber to frame homes has increased by $16,000 since March.
- OSB plywood has increased 212% since April
- Stick wood lumber has increased by 120% in the same time period
- Masonite interior doors are a 6-8 week delay. In order to close some homes, they have installed temporary doors
- Windows are on a 4-6 week delay
- Electrical components, circuit breakers, can lights etc are in shortage
- Exterior decorative columns are in a shortage
- HVAC units are on a 4-6 week delay
- Labor continues to be a challenge, but NAHA is doing something about it
A lot of these delays are due to railroad car shortages across North America. Manufacturing plants have increased production in US and Canada, but the RR cars are not available to ship products. Some manufacturing plants are closing after every shift for extra cleaning that delays manufacturing and shipping.