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National Builder Shortage and Under-building Impact

  • 3 min read

The Rental Struggle and the Deeper Issue

A recurring topic in today’s headlines is the financial struggle of renters trying to make ends meet. However, buried deep within these reports, beyond the surface issue of affordability, lies a more pressing concern – a builder shortage.

Two Critical Factors: Builders and Costs

To comprehend the gravity of the situation, one must recognize the confluence of two critical factors: a national shortage of builders and the relentless rise in materials costs. These challenges pose a daunting task – undoing decades of neglect in the housing sector.

The Builder Shortage: A Present Predicament

The scarcity of builders on a national scale is a predicament we face today. For years, we’ve been grappling with a chronic underbuilding crisis. What does this imply? It means we’re already facing a shortage of homes in the market, and this deficiency is poised to persist. Creating a multitude of new building companies isn’t a feasible solution.

Insights from Secure Buildings

Our insights, gained from being a licensed general contractor at Secure Buildings, offer a firsthand look into the state of the industry. Large national builders like KB Homes and GL Homes exist, but the issue extends beyond them. Smaller regional builders, responsible for new home construction, renovations, and additions, face the same predicament as their larger counterparts – a scarcity of skilled workers.

The Skilled Worker Shortage

Even with competitive wages, often in the range of $50 to $60 an hour, finding dependable employees in the construction trades is a challenge. The shortage of skilled workers, including framers, roofers, electricians, plumbers, and excavation specialists, impedes progress. In some regions, these trades offer substantial compensation, but the labor pool remains scarce.

The Housing Deficit Dilemma

The national builder shortage and decades of underbuilding have culminated in a housing deficit that can’t be ignored. While it might not be the sole cause of homelessness, it undeniably contributes to soaring housing prices. Many homeowners are reluctant to sell their properties, holding onto low-interest mortgages. Simultaneously, the demand for new homes outpaces supply, resulting in backlogs and waiting lists in most areas.

The Pace of New Home Construction

The construction of new homes isn’t a swift process; it involves permits, site work, and meticulous planning. So, we must ask: What’s the situation in your locality? Are new homes being constructed at a pace that matches the growing demand, or are we facing a housing crisis that continues to escalate?

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