Builders fall behind on construction of sold homes

Backlog of unbuilt homes rose by 16% in April

National /
May.May 27, 2021 01:30 PM
(iStock)

(iStock)

If you bought a new home in April, you may be waiting a bit to move in.

The number of homes sold in April that have yet to begin construction rose by 16.5 percent to 325,000, Bloomberg News reported, citing data from the U.S. Census Bureau. That’s the highest that number has been since 2006. Supply-chain challenges and rising costs of materials — especially lumber — are to blame.

In the first quarter, backlog units for the industry increased by 57 percent year-over-year, compared to 14 percent during the same period in 2020, the publication reported.

The New Home Company experienced the largest uptick in backlogs year-over-year at 273 percent, according to data from John Burns Real Estate Consulting. Lennar saw the smallest increase of 25 percent.

Those homes with construction underway dropped to the lowest it has been since June as builders struggle with shipments of materials, the publication reported. Construction of new homes fell 9.5 percent in April.

Still, demand for homes has pushed prices higher. According to census data, the median price for a home is now $372,400, a 20 percent increase from the same time last year.

[Bloomberg News] — Cordilia James





    Related Articles

    arrow_forward_ios
    Buildots' Aviv Leibovici, Roy Danon and Yakir Sudry (Buildots)
    Construction-tech firm Buildots raises $60M in Series C round
    Construction-tech firm Buildots raises $60M in Series C round
    366 State Street and 37 Sidney Place in Brooklyn (Corcoran, Zillow)
    Passive house asking $15M tops Brooklyn contracts
    Passive house asking $15M tops Brooklyn contracts
    100 Eleventh Avenue (iStock, Rhododendrites/CC BY-SA 4.0, via Wikimedia Commons, Illustration by Kevin Cifuentes for The Real Deal)
    Lower-end listings dominate Manhattan’s luxury deals
    Lower-end listings dominate Manhattan’s luxury deals
    Wildfire, Houses
    One in five homes facing wildfire risk, report says
    One in five homes facing wildfire risk, report says
    (Top) 1580 Meadow Lane in Southampton NY and (Bottom) 2056 Montauk Highway in Amagansett NY (Zillow)
    A tale of two oceanfront Hamptons homes
    A tale of two oceanfront Hamptons homes
    More and more homebuyers and investors are coming to the negotiating table with cash in hand. (iStock)
    In cities, “starter homes” getting more difficult to find
    In cities, “starter homes” getting more difficult to find
    A photo illustration of city developers and preservationists arm wrestling (iStock)
    Preservationists and developers duel upstate. Wanna guess who’s winning?
    Preservationists and developers duel upstate. Wanna guess who’s winning?
    John Steinbeck and his Sag Harbor cottage. (Getty)
    John Steinbeck’s Sag Harbor home could become retreat for writers
    John Steinbeck’s Sag Harbor home could become retreat for writers
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...