{"id":4203,"date":"2017-05-05T00:00:00","date_gmt":"2017-05-05T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/new-home-prices-surge-the-real-reason\/"},"modified":"2017-05-05T00:00:00","modified_gmt":"2017-05-05T00:00:00","slug":"new-home-prices-surge-the-real-reason","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/new-home-prices-surge-the-real-reason\/","title":{"rendered":"New-Home Prices Surge: The Real Reason"},"content":{"rendered":"

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New-home construction is now taking place at around 1.2 million units annually, a welcome pickup to many buyers following years of slumps after the Great Recession. But a tight labor market means the workers have yet to return, and that lack of labor is increasing construction costs.<\/p>\n

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Read more<\/strong>: Buyers Rushing Toward New Construction<\/span><\/p>\n<\/blockquote>\n

When construction activity gained steam in 2012, the problem started to surface, and it has increased ever since, according to industry reports.<\/p>\n

\u201cThe share of builders reporting either some or a serious shortage has skyrocketed from a low of 21 percent in 2012 to 46 percent in 2014, 52 percent in 2015, and now 56 percent in 2016,\u201d explains Paul Emrath, an economist for the National Association of Home Builders, describing the trade group\u2019s results from its annual labor shortage survey.\u00a0<\/p>\n

Seventy-five percent of builders say they\u2019ve had to pay higher wages and bids to attract a workforce. Sixty-four percent have delayed projects, and 68 percent have had to raise home prices. They\u2019re struggling to not only add to their own workforce but also find subcontractors, such as bricklayers and electricians, the survey revealed.<\/p>\n

During the recession, workers fled the building industry, and they\u2019ve never returned, says Jerry Howard, CEO of the NAHB. The domestic construction workforce sought other careers, while foreign-born construction workers often returned to their home countries, Howard says.<\/p>\n

That labor shortage is pressing home prices even higher. The median price between April 2012 and April 2017 went from $151,000 to $196,500\u2014a 30 percent increase, significantly higher than the inflation rate during that time.<\/p>\n

Source: \u201cAmerica\u2019s Housing<\/a> Construction Labor Shortage Continues,\u201d Forbes.com (April 29, 2017)<\/em><\/p>\n<\/div>\n

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New-home construction is now taking place at around 1.2 million units annually, a welcome pickup to … New-Home Prices Surge: The Real Reason<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":4204,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[518,1403,2890,12908,543,41,818],"class_list":["post-4203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-america","tag-buy","tag-construction","tag-home","tag-home-buying-guide","tag-property","tag-real"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/05\/Izq9WnHoIUg","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1383,"url":"https:\/\/amazingproperty.com.ng\/blog\/buyers-are-being-drawn-to-new-homes\/","url_meta":{"origin":4203,"position":0},"title":"Buyers Are Being Drawn to New Homes","author":"Amazing Property","date":"February 27, 2017","format":false,"excerpt":"[ad_1] Sales of newly built, single-family homes increased 3.7 percent last month, reaching a seasonally adjusted annual rate of 555,000 units, the Commerce Department reports. \"We can expect further growth in new home sales throughout the year, spurred on by employment gains and a rise in household formations,\" says Robert\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/fb_reg_new_jan17.png?fit=600%2C222&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/fb_reg_new_jan17.png?fit=600%2C222&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/fb_reg_new_jan17.png?fit=600%2C222&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7913,"url":"https:\/\/amazingproperty.com.ng\/blog\/housings-state-of-union-pressing-issues-ahead\/","url_meta":{"origin":4203,"position":1},"title":"Housing\u2019s State of Union: Pressing Issues Ahead","author":"Amazing Property","date":"January 26, 2018","format":false,"excerpt":"President Donald Trump\u2019s State of the Union address is slated for next week, but realtor.com\u00ae released its own \u201cState of the Housing Union.\u201d The housing market outlook is looking bright on several fronts: strong buyer demand, particularly among first-timers, and a growing U.S. economy urging more consumers to buy. But\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Realtorcom Housingstateofunion.jpg","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/realtorcom_housingstateofunion.jpg?fit=281%2C1200&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1477,"url":"https:\/\/amazingproperty.com.ng\/blog\/why-new-homes-are-about-to-get-pricier\/","url_meta":{"origin":4203,"position":2},"title":"Why New Homes Are About to Get Pricier","author":"Amazing Property","date":"March 1, 2017","format":false,"excerpt":"[ad_1] With the cost of building materials jumping 25 percent year over year, according to the National Association of Home Builders' NAHB\/Wells Fargo Housing Market Index, builders are increasingly concerned about how this will affect home buyers in the new-construction market. In 2016, builders ranked the cost of building materials\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3867,"url":"https:\/\/amazingproperty.com.ng\/blog\/buyers-rushing-toward-new-construction\/","url_meta":{"origin":4203,"position":3},"title":"Buyers Rushing Toward New Construction","author":"Amazing Property","date":"April 26, 2017","format":false,"excerpt":"Sales of newly built single-family homes increased for the third consecutive month, posting a strong showing to the spring selling season, the Commerce Department reported Tuesday. Single-family new-home sales rose 5.8 percent in March to a seasonally adjusted annual rate of 621,000 units. \u201cThe March sales numbers are the second\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3018,"url":"https:\/\/amazingproperty.com.ng\/blog\/townhomes-are-having-a-moment-again\/","url_meta":{"origin":4203,"position":4},"title":"Townhomes Are Having a Moment Again","author":"Amazing Property","date":"April 5, 2017","format":false,"excerpt":"Townhomes are now the fastest-growing segment of the single-family housing construction market, according to the National Association of Home Builders. Construction of townhomes surged 17.8 percent from 2014 to 2015. That is compared to a 10 percent increase of construction of detached single-family homes and a 12.1 percent increase in\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5078,"url":"https:\/\/amazingproperty.com.ng\/blog\/new-home-prices-hit-record-high\/","url_meta":{"origin":4203,"position":5},"title":"New-Home Prices Hit Record High","author":"Amazing Property","date":"June 26, 2017","format":false,"excerpt":"[ad_1] The median price for a new single-family home reached a record high in May of $345,800, the Commerce Department reports. Buyers will be paying a huge premium for new construction, as new-home prices are now 16.8 percent higher than they were a year ago. 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