More Builders Report Material Shortages Now Than Ever Before

More builders are reporting severe material shortages now than ever before, reports the National Association of Home Builders. The association began tracking material shortages in the 1990s, and no other NAHB survey has posted such shortages as the May 2021 Housing Market Index. More than 90% of builders who purchase appliances, framing lumber, OSC, and plywood are reporting shortages. More than 70% of builders purchasing steel, gypsum wall board, millwork, vinyl siding, copper wiring, trusses, windows, and doors are reporting shortages as well. The June 2020 survey found less than 40% of builders reporting any shortages of listed materials.

To further illustrate how drastically the situation has changed since last year, the table below compares results from the last two HMI surveys on building materials.  Of the 24 building materials and products listed on the May 2021 survey, 23 were also covered in June of 2020.  In the eleven months between surveys, the share of builders reporting shortages increased by at least 27 percentage points on all 23 items, usually by much more.  In the most extreme case, the share of builders reporting a shortage of OSB skyrocketed by 83 points, from 9 to 92 percent.  The shortage percentages for plywood, framing lumber and copper wiring also jumped by 70 points or more.

The one item listed in 2021 but not in 2020 was appliances.  Historically, builders have not often complained about appliance shortages, but NAHB added the item to the latest iteration of the survey after fielding a volley of anecdotal complaints earlier this year.  The addition turned out to be more than justified.  As shown above, 95 percent of builders reported a shortage of appliances in May of 2021—the single highest shortage percentage recorded on any item since NAHB began collecting the information in a systematic way in the 1990s.