If you've considered purchasing a new construction home lately, you may be taken aback by the seemingly high prices! A recent survey by the Dallas Builders Association revealed some insight into the well-documented labor shortage facing the industry. Here are some of its findings:
The shortage is most apparent with framers and brick masons, with one builder admitting the labor shortage has added a minimum of three months to his company's construction schedule. The average age of a construction worker nationwide is 42, and that number is even higher for many of the skilled trades. With record job growth and an influx of new homeowners in this area, demand remains high, but the solution for the labor shortage is not showing any signs of letting up.
Add to this the increased cost of regulation, and you can understand why costs are going up. According to the National Association of Home Builders, the cost of regulation has increased more than 30% over the last five years. The Dallas area is no exception, with more than 1/3 of Dallas Builders Association members citing code changes and increased fees and dedication requirements as a substantial reason for added delays and increased costs.
Dallas home prices are at a record high - up about 25% from the last housing boom. While corporate relocations account for around 25% of buyers, builders ranked those aged 35-54 to be the most common buyer, followed by 55-74 and 18-34. While 65% of millennials aspire to live in a single-family home, that age group has experienced the largest decline in homeownership since 2006.