In a recent article Lawrence Yun, National Association of Realtors’ chief economist, explains the impact of deficiencies in the labor market on the construction of new homes.
He states home builders can find buyers and make a nice profit in this current market; however, they cannot build as many homes as they would like because of the difficulty of finding skilled construction workers.
Part of the problem is due to a simple lack of skills and some areas are addressing this deficiency by offering skill training at community colleges or similar institutions, sometimes free of charge.
Another part of the problem is there aren’t enough unemployed workers willing to relocate to an area where they could be hired.
Yun goes on to explain “a generation ago, about 20% of Americans moved to a different place in a given year. Only 11% relocate today, and many don’t leave their county. Fewer than 2% move across state lines.”
When I speak with contractors they are reinforcing Yun’s words stating they have problems finding and keeping workers.
The end impact for individuals looking to build may be a longer timeline for the construction and/or a higher end price for their home.