Builders association CEO thinks construction prices may stabilize in future

5p p-Building Costs Latest pkg_frame_464.jpeg
Posted at 12:26 PM, Sep 18, 2021

NASHVILLE, Tenn. — The CEO of Tennessee's builders association believes there could be an end to the supply chain problems facing construction companies.

However, that end could be 18 months out. Charles Schneider with Home Builders Association of Tennessee said it could be a while before manufacturing companies catch up with demand.

Labor shortages and high demand for almost all materials have forced construction material costs up 30% in a year this past July. That data is according to the National Association of Home Builders.

"From our understanding it's going to be 12 to 18 months before the supply manufacturing chain catches up," said Schneider. "That is everything from people working in a family, skilled people that are making cabinets, windows and other custom products."

Schneider also said there's a lack of truck drivers to get building supplies to work sites.

It has an impact on builders and buyers alike.

"I think every week I get a notice from one of my suppliers that I'm having a price increase," said Steven Shalibo, owner of StoneBridge Homes and also president of HBAT.

It's impact every building supply through the beginning of the pandemic.

Eventually, Schneider believes the manufacturing companies will catch up with the high demand. The cost of materials isn't slowing down buyers, though.

Interest rates for home buyers are still low and more people are trying to purchase homes, especially in the midstate, he said.

"Demand is really strong, plus Tennessee is a place that people are moving to from other places," said Schneider. "We're building houses as quickly as we can. Materials aren't coming in as quickly as they should. So, it takes longer and it is a highly competitive process right now."