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
    A rendering of the project at 1 Park Row in the Financial District.
    L.A.-based lender puts FiDi project into construction with $120M loan
    L.A.-based lender puts FiDi project into construction with $120M loan
    From left: 80 Columbus Circle with Robert Stiller and 737 Park Avenue with Hamad bin Khalifa Al Thani (Photos via Google Maps, Agnovos, State of Qatar, Godsfriendchuck/Wikimedia)
    Mandarin Oriental, 737 Park units sell at substantial losses
    Mandarin Oriental, 737 Park units sell at substantial losses
    Steve Cohen and 151 East 158th Street (Getty, Google Maps)
    Steve Cohen’s $30M condo sells above asking — after a 74% cut
    Steve Cohen’s $30M condo sells above asking — after a 74% cut
    Nicole Oge, Casa Blanca founders Hannah Bomze and Erez Zaurer (Getty, Casa Blanca)
    Former Elliman, WeWork marketing chief joins “Bumble for homes” startup
    Former Elliman, WeWork marketing chief joins “Bumble for homes” startup
    470 Broome Street  and Rayo Withanage (Photos via Saltzman Architects, P.C. and Withanage)
    From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
    From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
    Tenants are singing longer leases to lock in low rent. (Getty)
    Tenants locking in longer leases as apartment rents rise
    Tenants locking in longer leases as apartment rents rise
    Last year more people relocated to ZIP codes with lower home values and more space. (Getty)
    Long-distance movers found cheaper and larger homes in 2020
    Long-distance movers found cheaper and larger homes in 2020
    A former building inspector used his leave of absence to work with a Brooklyn construction firm (Getty)
    Ex-building inspector prosecuted for “double dipping” with construction firm
    Ex-building inspector prosecuted for “double dipping” with construction firm
    arrow_forward_ios

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

    Loading...