Builders are up against short supplies of a variety of materials needed to build homes, such as wood paneling, ceiling joists, and pipes. They’re searching for substitutes to keep construction schedules on time, but the process is also adding to their costs.

Supply shortages have become a common story in the homebuilding industry over the past year. More than 90% of builders say they have faced a shortage of appliances, framing lumber, plywood, and oriented strand board (a type of engineered wood), according to a survey from the National Association of Home Builders conducted in May. Eighty-seven percent of builders also cited shortages of windows and doors.

Builders are showing more willingness to pay for the substituted materials in order to try to avoid construction delays. They fear that not doing so could cost them some lost sales.

Demand for new homes has surged. Shortages of materials first started when the pandemic began and some factories temporarily shut down. Factories have had a tough time catching up since then due to the high demand, staffing shortages, and other challenges.

Source: “Builders Hunt for Alternatives to Materials in Short Supply,” The Wall Street Journal (Oct. 6, 2021) [Log-in required.]