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The Impact of Rising Costs of Building Materials

The Impact of Rising Costs of Building Materials

FromEveryday Green Home


The Impact of Rising Costs of Building Materials

FromEveryday Green Home

ratings:
Length:
35 minutes
Released:
Aug 11, 2021
Format:
Podcast episode

Description

I have seen some crazy things happening lately in the homebuilding industry! There is turmoil with both new and existing homes as a result of shortages and supply-chain disruptions in many different areas.  In this episode, we will look at the problems we are facing and discuss why they are happening. We will break everything down into the three parts of a house: the land, the materials, and the labor. They are all connected, and we are having challenges with all of them.  Welcome to another episode of the Everyday Green Home Podcast! I’m Marla, the Green Home Coach, and I am happy to have my ever-popular co-host, Tony Pratte, joining me face-to-face in the studio today! Huge impacts The markets for real estate, new builds, and remodeling of existing homes are connected, and they are all having problems now. The impacts of that are huge. They are affecting building costs, timing, and even how people are moving around. The rising cost of lumber Houses are now being sold, sight unseen, to the highest bidder, and new homes are currently averaging between twenty and forty thousand dollars more due to the rising price of lumber.  A challenge There are not enough people working in the construction and skilled trades. Even finding someone to come in and do a simple home repair has become challenging right now.  Sawmills Sawmills got shut down during the pandemic. We have fewer sawmills online now than we did ten or twenty years ago because many of them shut down during the great recession and never got going again.  Border and lumber issues The turnaround time for lumber shipments from Canada is way too long because it has to cross the border and quarantine. The transportation of the materials is also an issue because the transport drivers are having problems with being locked up.   Alternative materials The producers and salespeople of alternative materials are finally making sure that their voices get heard.  Cabinets There is a massive issue with kitchen cabinets being unavailable.  Windows and doors Even windows and doors have become hard to find because factories in which they are made were shut down. Now, they are unable to catch up with the demand. Appliances There is a six-month wait for many appliances, even though many warehouses are full of appliances that have already been paid for. The warehouses are full because the pipeline got stuck due to new houses not being completed or reaching a point where the appliances can get delivered. Copper Electricians are running out of wire, and the price of raw copper is shooting through the roof! That affects plumbers and electricians and also inadvertently HVAC heating and cooling. Resin There is a shortage of the resin that makes the plastic for electric cover-plates, light switches, wall plates for cable or data connections, speakers, ceiling-mounted speaker brackets, and more. It is all connected If the openings in the dry walls for the electric wires do not get covered, the house cannot get inspected. Without the inspection, the sale of the house cannot close. That creates even more demand in the already-tight existing home market.  Home inspections Homebuyers and sellers are now becoming willing to waive their home inspections. If you buy a house without a home inspection, you have no recourse, and you will never know what you are dealing with in terms of termites, water issues, or components that do not work. Demand is outstretching supply Currently, the demand for materials is outstretching the supply. That has caused a surge in pricing.  A shortage of land Many people want to move into single-family homes. That requires land, but there is a shortage close to the cities. New areas As a result of more people working more flexibly or working from home, new areas are starting to open up for people to live.  The basics of land The land to build homes on is finite and scarce. Ten years ago, it took about six months to get through all the permit requirements for developing a new pie
Released:
Aug 11, 2021
Format:
Podcast episode

Titles in the series (100)

The Everyday Green Home Podcast helps you GET the value of green: for you, your family and your community. Whether its green homes, green living or the people who make it happen, join Marla Esser Cloos to learn how green and sustainability practices and products work for you.