Builders’ Top Challenges for 2024
High interest rates were a significant issue for 90% of builders in 2023, and 77% expect them to be a problem in 2024, according to the January 2024 survey for the NAHB/Wells Fargo Housing Market Index.
Rising inflation in U.S. Economy, cited by 83% of builders, with 52% expecting it to be a problem in 2024, was the second most widespread problem in 2023.
According to Eye On Housing, The cost and availability of labor was a significant problem to only 13% of builders in 2011. That share has increased significantly over the years, peaking at 87% in 2019. Due to the pandemic, fewer builders reported this problem in 2020 (65%), but the share rose again in 2021 (82%) and 2022 (85%). Not surprisingly, given the increase in construction job openings, the share eased slightly in 2023 to 74%. A similar 75% expect the cost and availability of labor to remain a significant issue in 2024.In 2011, building materials prices was a significant problem to 33% of builders. The share has fluctuated over the years, from a low of 42% in 2015 to a peak of 96% in 2020, 2021, and 2022. The slowdown in single-family construction in 2023 made this less of a problem for builders last year, as ‘only’ 63% reported it as a significant issue. Fewer expect it to face it in 2024 (58%).
