CALL INFO LINE: 801-859-6555
 Welcome to the FreeUtahHomeSearch.com Blog

2014-07-30 09:28:57
Why Buyers Are Annoyed With New Homes

Why Buyers Are Annoyed With New Homes

An increasing labor shortage among homebuilders reportedly is causing more new homes to be delivered late, and buyers say they're getting frustrated that builders don't come back to fix common issues such as sticky doors and loose floor tiles after they move in.

'Builder tardiness' is a growing problem because the economic downturn drove hundreds of thousands of craftsmen and laborers away from housing and into other industries — and they've yet to return to construction, the Los Angeles Times reports. The labor shortage has become 'substantially more widespread' since last year, according to the National Association of Home Builders.

Learn the Building Process

'The incidence of reported shortages is now surprisingly high relative to the current state of new-home construction,' NAHB economist Paul Emrath noted in a recent report.

About two out of every three builders report paying higher wages due to the labor shortage. What's more, nearly as many say they've had to raise home prices, too. Builders report that their direct labor or employee costs have risen 2.9 percent over the last six months, while subcontractor costs have increased 3.8 percent, according to NAHB.

On average, single-family builders employ about 25 trades when constructing a residential house, and more than half of builders subcontract at least 75 percent of the construction work, according to NAHB. Builders report the greatest shortages in carpenters and framing contractors.

The shortage means that new-home buyers may have to be more patient, housing experts say. Some builders may require subcontractors who did the original work to follow up on any callbacks from buyers for requested repairs. Large builders often send their own maintenance crews to handle callbacks and may be able to respond more quickly to such requests. But for builders seeing an increase in construction and facing a labor shortage, they're response may be delayed and new-home buyers may find they'll have to be patient and follow up frequently.

Source: “Housing Labor Shortage Turning More Severe, Boosting Home Prices,” Los Angeles Times (July 26, 2014)

 
Blog Archive
2017-04-16 09:49:56
Population Growth Shifting Out of SL To UT County

2017-04-16 09:49:01
State’s economy fueling population growth

2017-03-10 16:03:59
CNBC ranks Utah No. 1 state for business

2017-03-08 10:24:12
Toughest & Easiest States for 1st Time Home Buyers

2017-01-04 10:39:50
Housing Market 2017: The Positives & Negatives

2016-06-14 10:31:17
Salt Lake Monthly Housing Report

2016-05-20 15:42:35
Who Pays the Highest Property Taxes?

2016-03-31 15:49:40
Cities to Watch: 2016's Fastest-Growing Places

2016-03-29 13:19:08
Salt Lake Quarterly Housing Report

2016-01-28 08:37:27
Park City 2015 Year-end Statistics Press Release

2016-01-18 10:50:31
5 Things to Never Say When Selling a Home

2016-01-11 11:46:49
The ‘Missing Link’ in Housing

2015-12-23 12:08:43
5 Real Estate Trends That Will Dominate 2016

2015-12-15 10:56:50
How Will Higher Rates Affect Housing?

2015-12-04 10:39:02
Big Expectations for Housing in 2016

2015-12-01 10:07:30
6 ‘Tacky’ Home Décor Trends

2015-11-10 11:31:23
Home Buyers Don’t Need to Fear

2015-10-28 09:48:58
Home Prices Rising at Faster Pace Than Inflation

2015-10-20 15:23:54
Scammers Using New Chip-Based CCs as Fresh Phishin

2015-10-09 10:13:25
3 Home Inspection Deal-Breakers

2015-10-06 14:42:40
The Next Three Months: Best Time to Buy

2015-09-17 10:30:01
How High Will Mortgage Rates Actually Climb?

2015-09-11 14:14:05
Best Day of the Year to Buy a Home

2015-08-24 08:28:04
Home Resales at 8-Year High as Buyers Act Before M

2015-07-31 11:21:43
Utah Economy Newsletter June 2015 Now Available

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.