According to a recent NAHB/Wells Fargo Housing Market Index survey, 76% of builders expect building materials prices to be a major problem in 2013. This is up significantly from 46% in 2012 and 33% in 2011.
Second on the builders’ list of concerns is the cost and availability of labor. More than half of the builders expect labor to be a problem this year. This is an increase from 30% who said they faced the problem in 2012 and only 13% in 2011.
The third major area of concerns for builders is the cost and availability of developed lots. Almost half of the builders believe this issue will be a problem in 2013. This is up from 24% who said they faced the problem in 2012 and 21% in 2011.