Like the rest of the construction industry, the building trades contractors have had a tough and unpredictable two years. In 2021 we saw more price increases than we had the prior decade.
Many of the increases came with little notice. At one point an aluminum supplier could not give us a price until it received its delivery. Our next question was, “When is your delivery scheduled to arrive?”
They couldn’t tell us.
Since then, the supply chain and pricing have started to stabilize, at least for the items we buy in large quantities. Aluminum and vinyl prices have held steady since 2021 highs, and the only items we have seen increases in are siding and pavers, which are both cement-based.
Manufacturers have cited the passage of the 2022 Infrastructure Investment and Jobs Act as being the root issue to the increase in cement costs. Demands on the cement industry to provide for infrastructure construction could mean shortages for residential construction and assuredly higher prices.
While the prices have not gone down as fast as they went up, the availability overall is much better. The first step in prices going down is to actually have the product on the shelves.
The slowing pace of single-family starts will bring down the cost to build. Hopefully, this will help the affordability crisis we are in.
Unfortunately, even with the cost to build going down, interest rates may still make a home purchase unattainable for many buyers.
It is frustrating to have a strong underlying demand for housing when affordability is challenging buyers and forcing them to reassess what they must have in a new home.
It’s hoped the hard cost to build will go down this year so we can face the affordability crisis on a single front instead of two.
David Hacker is the owner of Construction Specialties. He can be reached at [email protected].