![]() It takes a long time to build capacity.”Ĭlosely linked with the supply chain backlog is the rising cost of materials. He commented, “Even if COVID went away tomorrow and the Russia-Ukraine war ended, these supply chain troubles last into 2023 and in some cases 2024. has, there will continue to be a lag in production of materials due to COVID-19. Any of these events could further destabilize financial markets and disrupt the supply chain.Īssociated Builders and Contractors Chief Economist Anirban Basu opined that since many countries do not have access to the number of vaccines that the U.S. World affairs continue to cause concern as China demonstrates a new belligerence in the South Pacific, North Korea prepares for ballistic missile tests and Russia occupies Ukraine. ![]() Sheldon Yellen, CEO of disaster response company Belfor, believes that “supply chain issues and the COVID work stoppages in some of the manufacturing facilities and plants that are producing materials are probably more significant than the actual demand itself.” The good news is that once they arrive, inventories not affected by chronic raw material shortages will be replenished. This year, contractors are facing many of the same obstacles as they did in 2021, with ongoing supply chain interruptions, workforce woes and soaring material costs compounded by rising inflation and interest rates.Īccording to a recent report by the American Supply Association, supply chain congestion is improving for some sectors, but there are still nearly two million containers headed inbound into the United States. The National Home Builders Association says increasing prices could cause the cost of an average new single-family home to increase by more than $18,600 in 2022. And while various sources speculated that housing inventory would improve this year, inventory levels actually fell further in the early part of the year due to, in part, a wave of first-time millennial homebuyers rushing to take advantage of low mortgage interest rates. Due to the prevailing cycle of low inventory and high demand, both Fannie Mae and Zillow walked back their housing forecasts for 2022, predicting home price growth of 11.2% and 17.3%, respectively. Ongoing social distancing measures kept many workers and students at home, and combined with historically low interest rates, demand for housing skyrocketed.Īs we enter the pandemic’s third year in 2022, the housing sector remains robust, though headwinds are starting to appear on the horizon. Thanks to government assistance, many businesses were able to survive, while others actually thrived in the pandemic-spawned consumer market. But not only did the housing market continue to boom, but the stock market also had a banner year, with the S&P 500 increasing by nearly 27 percent. It does not store any personal data.Looking back on 2021, many economists predicted a slow economic recovery and a potential housing crash. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly.
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