Homebuilders’ woes coming from many directions

Labor shortages aren’t an issue, he said, but those shortages put things on hold: “We don’t necessarily have a labor shortage, but we can’t start because of potential delays.” Sub-zero refrigerators and Viking ranges are all the rage among luxury supplies, but are hard to come by as well, he noted. “There are alternatives, but still months and months away.”

And that’s not even mentioning supply costs.

“Another big factor is several of our projects are canceled because of the astronomical building material costs,” Hofmann said. Take cedar shingles: “They’re practically the cost of gold these days. I think it’s $450 to cover 20 square feet with cedar siding, which is just ridiculous. That project was postponed because from when we started this design to when it was ready for construction, the building materials costs jacked up the price by $30,000.”

Lumber costs continue to rise as well – if one can even secure it, he said. “We can’t order that in advance, and there’s no lead time.” Back in the day, he said, one could call the lumber yard and get what’s needed in a matter of a couple of days. Today, it takes two to three weeks. Lately, more substitutions are being made with three0inch flooring in lieu of the 2 ¼-inch variety given the latter’s shortage amid high demand, he said.