If You Don’t Like Home Prices, Blame the Labor Shortage

A shortage of subcontractors continues to hit the new-home market, placing upward pressure on home prices, according to the latest reading from the National Association of Home Builders and Wells Fargo Housing Market Index. The index asked builders about specific shortages they’re facing among 15 different occupations.

The labor shortage over the past year has meant builders have had to pay higher wages to attract subcontractors and have faced greater difficulty in completing projects on time. Seventy-five percent of builders surveyed say the shortages have also translated into higher home prices.

Subcontractors index at article source: “Labor Shortages Still Hurting Affordability,” National Association of Home Builders’ Eye on Housing blog (Aug. 5, 2019)

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