Homebuilder Comments in August: “Supply shortages are getting worse."
Some twitter comments from Rick Palacios Jr., Director of Research at John Burns Real Estate Consulting (a must follow for housing on twitter!):
Companies tied to housing revising guidance due to supply chain. Commentary from our builder survey this month indicates things getting worse before they get better. Homes sitting, waiting for materials (dead days). Big delays in windows. Delta outbreaks. In sum, a crapshoot. 🧵
#Nashville builder: “It's a crap shoot. Some municipalities will issue permits in 1 week, & others are 6-9 months behind. Supply chain is a mess. Windows are now 7 months out, cabinets are 6 months out, etc.”
#Chicago builder: “Build cycle increased due to backordered materials including bathtubs, appliances, & ceramic tile. Trades are much more limited in availability & now have some ‘dead days’ with no activity.”
#Columbia builder: “2 biggest constraints have been truss capacity & window timelines. Went from foundations sitting to now framed houses that are waiting on windows. Next big concern is cabinet manufacturers.”
#Knoxville builder: “One municipality won’t let us pass mechanical/electrical/plumbing inspection until windows are installed, but windows have been on backorder for weeks. Homes just have to sit.”
#Phoenix builder: “Houses are just sitting versus progressing each day. Almost every trade is taking longer to perform their task than they did the month prior. This is based on increased starts without increased labor to match.”
#Denver builder: “Entire supply chain has been disrupted. Main supply issues include trusses, cabinets, tempered glass, & appliances. Labor supply at the trade level continues to be a challenge. Trying desperately to protect our year end closing projections.”
#SaltLakeCity builder: “Appliances are always late, cabinets & windows are 16-18 weeks late. Had to change light fixtures to ones we can get.”
#Jacksonville builder: “Many months of delays due to truss manufacturing problems, both COVID outbreaks closing the plants, & steel shortage for engineered plate productions. Window & sliding glass door manufacturing delays having most effect on cycle time.”
#GrandRapids builder: “Constantly increasing lead time with suppliers to make sure products arrive reasonably close to on time. It is a construction nightmare.”
#Columbus builder: “Certainly expected supply chain to be well on the way to recovering, but at this time, the frequency & duration of disruptions has not significantly eased or improved.”
#WashingtonDC builder: “Cycle times from foundation to completion remained relatively unchanged until ~3 months ago when supply chain for many materials started to experience extreme disruptions. Lead times for many materials & supplies are increasing dramatically.”
#Boston builder: “Used to build & close a house in 4 months from purchase & sale. Now takes 6 months.”
#Richmond builder: “Lead times for some materials & supplies increased dramatically. Constantly adjusting schedules & processes to address but experiencing rolling increasing. Problems are moving from one material or supply to another weekly.”
#Seattle builder: “Had to find replacement material or close homes without some items to be installed as we get them.”
#RiversideSanBernardino builder: “Inspectors & trades slightly slower to respond. Due to supply shortages, we are now storing product on site earlier in the process.”
#WestPalmBeach builder: “Most increases in cycle time are due to supply chain issues. Truss allocations & window lead times are biggest issue. Window lead times are up to 24 weeks and they still don't hit that date.”