The Problems Facing Builders in 2021

If you are searching for a roof truss company in San Diego, there is a chance that you are doing so in an effort to save money on the rising costs of building.  Truss Manufacturers in San Diego are able to help builders save money and time, but more importantly, they are able to help them manage many of the biggest problems facing the construction industry as 2021 draws to a close.

 A Picture of Construction Post-COVID

 After nearly two years of COVID-related shutdowns and rental freezes, several changes to the housing market have occurred in the past few months.

 

●       The number of Single Family Residential (SFR) new construction homes in California bounced up significantly in 2021, going from 29,100 in September of 2020 to 34,800 in September of 2021–an increase of 20 percent.  Even with this healthy bump in numbers, however, this is only a fraction of the number needed to meet housing demand.  In 2005, there were 150,000 SFR starts, compared with only 59,000 total for 2020. 

●       Job losses were astronomical in 2020, due in part to COVID but also to a lack of workers to pick up the jobs when construction reopened.  This lack of labor is still a huge factor in construction, and will likely continue for the foreseeable future.  As of September 2021, all sectors of employment in California posted over 1 million unfilled job openings.

●       Tightening credit requirements and rising mortgage rates have reduced homebuyer capacity throughout the pandemic.  This issue is likely to continue as many people have been out of work or forced to take lower-paying jobs due to company shut downs and business closures.  This means that there are fewer solvent borrowers to build and pay for construction.

●       The year 2021 has seen some of the most widespread building material shortages in California history due to supply chain issues and other factors.  This has meant skyrocketing prices for lumber, nails, and other materials upon which builders rely.  The price and availability of materials for the future is also very uncertain, leading some builders to hold off on larger projects.  As builders see increased material and labor costs, these increases must necessarily be reflected in the price of construction, leading to further disinterest and reduction of building on the part of consumers.

●       Zoning regulations in some areas have become much more restrictive than in the past, leading to a downturn in building in those locations.  Additionally, rising costs of permits and other building factors, along with a reduced workforce to process regulatory paperwork, has impacted building in many cities.

Stone Truss has been one of the leading Roof Truss Manufacturers in San Diego for decades.  Our professionals understand the trends that builders are facing right now and can help them to create a plan that will allow them to cut costs and manage tight building budgets.  Give us a call today to learn how we can help you save money on materials, labor and other costs associated with roofing and flooring by using quality truss products.