As the construction industry slowly gets back on its feet, builders and building-supply dealers are reporting shortages and price increases for essential materials.
In a survey by the National Association of Home Builders and the National Lumber and Building Materials Association, 22% of builders said that oriented strand board (OSB) was in short supply, followed by wallboard (20%), framing lumber (18%), and plywood (18%).
An even larger percentage (27% to 28%) of lumber dealers reported shortages of OSB and plywood, with 36% saying supplies of framing lumber were lacking. Only 12% of dealers said there were shortages of wallboard.
NAHB chief economist David Crowe said in a statement that “supply constraints are one of the barriers to a more robust recovery.” He said the survey results were especially unsettllng because the rate of construction is still “far below what would be considered normal or necessary to meet underlying demand.”
According to NAHB, material shortages were more severe in 2004 and 2005, but the industry was producing 1.8 million new homes a year at that time. The current rate of construction is less than 1 million.
Dealers also reported price increases of about 10% over the last six months. Builders, on average, reported increases of about 5%.
The survey results are based on information collected from NAHB members and dealers in the first half of May.
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