It’s not just wood that’s hard to find, the president of the Berkley Building Company said it’s hard to find steel plates for farms, labor and the land.
BOISE, Idaho – As house prices continue to soar in Treasure Valley, an economist doesn’t need to see the laws of supply and demand in full swing. Weak housing supply and high demand for door-to-door calls in Idaho are driving housing costs soaring in Gem state.
While building more homes is an obvious solution to alleviating the shortage of inventory, builders in Treasure Valley told KTVB it was not that simple as the supply of building materials dwindled and the demand for new homes dwindled. increasing across the country.
It is not only wood that is difficult for builders to acquire, the president of the Berkley Building Company said that it is difficult to find steel plates for farms, labor and the construction industry. ground.
“We are doing our best to meet the demands, but there is so much going against us,” Jenna Englund told KTVB. “When you can’t get wood you can’t build a house and that’s the reality. So if we don’t have the materials, the labor and the land, it’s impossible to answer. at the request of the Treasure Valley at this time. “
Due to shortages of building materials, labor and land, Englund explained that the timeframe for simply building a house is getting longer.
“If we think it will take three months to build a house, it might take two more months because we just can’t find people to meet our schedules,” they said.
Rod Givens, the owner of Alturas Home, said the entire planning and construction process has essentially doubled since the valley’s real estate boom began.
“Five to six years ago it took maybe six to twelve months to buy a piece of land, engineer it, get it and be able to build and I think it takes a few years now to complete this. process, ”he said.
Brighton Corporation owner David Turnbull also told KTVB it is taking longer than in the past to build new homes.
“So we’re looking for processes that take longer than a year when they were able to do them here in a build cycle, in a season,” said Turnbull.
The 31-year-old industry veteran said homebuyers would feel the brunt of rising costs.
“We can’t do much about it, we can look at substitutions and better ways of doing things, maintaining the quality but making sure we do it in the most competitive way possible, but at the end of the day. account, the consumer pays for it, “he said.
Turnbull added that the shortages in most areas of the industry stemmed from the understaffing of many companies, which has “overwhelmed” the agencies “and the entire development structure is currently operating at full capacity.”
Treasure Valley’s current housing problems didn’t happen overnight, according to Givens, who grew up in the construction industry.
“This clearly dates back to the previous recession, when a lot of entrepreneurs really left the market and never came back. We have labor shortages,” he said.
Jon Hastings, CEO of Tresidio Homes, analyzed that the cost of wood to build a home has more than doubled from $ 30,000 a year ago to $ 82,000 today.
“It’s a dramatic increase and it is reflected in the price of the home and on buyers,” Hastings explained. “The challenge for buyers is that they see these prices go up and builders see their costs go up so much that builders are reluctant to commit to selling prices now until the homes are further advanced.”
Englund told KTVB that the current housing market “is so crazy” and the upfront costs before construction begins are expensive as well.
“If I price a house today and it takes time to build it because I got my permit and I have the manpower and we’re good to go , the house could cost us $ 20,000 more and, in many situations, that, ”she said.
Because of this, Berkley Building Company has changed their model and are no longer accepting construction work because they don’t know how much it would cost.
“So we build our houses and bring them to market when they’re more advanced and we have a good idea of when we can finish it and what it will cost,” Englund explained.
Alturas Homes also plans to build fewer homes due to the uncertainty surrounding the cost of supplies needed to build them.
“From the builders I know, we would like to build more houses and there are caps on our ability to deliver the supply that the market really needs right now,” Givens said.
This cap on what builders and developers can do with insufficient supplies is felt by new owners like Nicole Bell and her partner.
They built their house and closed it about a month ago and they too have had to deal with their fair share of delays due to shortages like the flooring and tiling of their house.
“We are still missing cabinet handles, our lighting is not even fully installed, everything that was in stock for the purpose of obtaining an occupancy permit,” Bell told KTVB. “We were trying to get out of our house, the house we were in, I sold it in October and it just delayed letting our buyer move in and it was just a domino effect. It was just a long process. “
Now the couple are still waiting for their fence to be built. However, she is also watching her neighbors face even more serious delays.
“A month ago they put all the foundation in place for the driveway or the foundation, but you haven’t seen the concrete people come in and sink yet and they wait and wait,” she said. declared.
For builders, until the supply of building materials catches up with the demand for houses, they will need to continue to be creative, change their designs, attract more workers, and work with other builders and builders. Idaho Building Contractors Association.
“There have been times when there have been shortages of materials, there have been shortages of concrete and lumber, but none of them with all of the factors affecting our industry right now” , Givens said.
Hastings added that the shortages have also impacted windows and appliances like microwaves.
The builders said they hope the shortages will decrease as things start to reopen and that will help their ability to build homes. They also pointed out that they were not making more money with the increase in the cost of houses, as the cost of labor and land also increased.
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