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.