Homebuilder Comments in August: 'Supply shortages are getting worse.'

 Some twitter comments in the newsletter from Rick Palacios Jr., Director of Research at John Burns Real Estate Consulting (a must follow for housing on twitter!):

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!):

Rick Palacios Jr. @RickPalaciosJr

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. 🧵

September 8th 2021

23 Retweets57 Likes

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

1 Retweet7 Likes

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

2 Likes

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

2 Likes

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

2 Likes

Rick Palacios Jr. @RickPalaciosJr

#LasVegas builder: “Supply shortages are getting worse.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

2 Retweets2 Likes

Rick Palacios Jr. @RickPalaciosJr

#SaltLakeCity builder: “Appliances are always late, cabinets & windows are 16-18 weeks late. Had to change light fixtures to ones we can get.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#DaytonaBeach builder: “Window delays the biggest contributor to delays.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#GrandRapids builder: “Constantly increasing lead time with suppliers to make sure products arrive reasonably close to on time. It is a construction nightmare.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#KansasCity builder: “Simply not enough trade base to keep up with increase in home starts.”

September 8th 2021

2 Likes

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#Boston builder: “Used to build & close a house in 4 months from purchase & sale. Now takes 6 months.”

September 8th 2021

3 Likes

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#Seattle builder: “Had to find replacement material or close homes without some items to be installed as we get them.”

September 8th 2021

2 Likes

Rick Palacios Jr. @RickPalaciosJr

#RiversideSanBernardino builder: “Inspectors & trades slightly slower to respond. Due to supply shortages, we are now storing product on site earlier in the process.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#RaleighDurham builder: “Getting materials such as I-Joist has been a major factor in delays.”

September 8th 2021

1 Like

Rick Palacios Jr. @RickPalaciosJr

#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.”

September 8th 2021

2 Likes

Rick Palacios Jr. @RickPalaciosJr

#FortWorth builder: “Labor shortage in literally every trade.”

September 8th 2021

1 Retweet3 Likes

Rick Palacios Jr. @RickPalaciosJr

#SanAntonio builder: “Delta wave hit our labor force hard last month, delaying most closings.”

September 8th 2021

1 Retweet2 Likes

Rick Palacios Jr. @RickPalaciosJr

#Houston builder: “Build cycle increased 25%+ in the past year, with biggest impacts coming in the past 4 months. Labor an issue more recently, particularly masonry. Production cycle is longest in many years.”

September 8th 2021

4 Likes

Rick Palacios Jr. @RickPalaciosJr

#Austin builder: “Nothing is fast. Shortages of parts & pieces in each stage. More work than labor to do it all, meaning it will just take longer to build a home. I don't see an end to it. It's the new normal unless a major overhaul of the way we build is made.” THE END

September 8th 2021

5 Likes