Materials supply chain, demand for new homes driving prices up

Materials supply chain, demand for new homes driving prices up

SAVANNAH, Ga. (WTOC) - Across the nation, a shortage in the home building supply chain on top of a booming demand for new homes is driving up prices of materials and the time it takes to build.

Konter Quality Homes is actively building new homes in three communities in the Savannah area. A global supply chain issue for all materials that go into the construction of a new home is causing that process to take longer though.

Mark Konter says it would normally take their builders four to five and a half months to complete a home. That same process is now more like six to eight months.

The supplies themselves are also costlier with the shortage. And with low home inventory nation-wide, supply cost and demand ultimately mean the buyer will pay more, roughly $36,000 on average, according to the National Association of Home Builders.

“Unfortunately, our industry partners are working hard to try to provide us with the best data they can. And we’re not yet seeing, unfortunately we’re not seeing the light at the end of the tunnel,” Konter said.

Konter says while it varies week to week, some of the hardest to find items for home builders are certain lumber products, appliances and manufactured flooring.

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