What You Need To Know if You’re Thinking About Building a Home
Written by Graham Team · Graham Team Real Estate Advisors — Henderson & Las Vegas, NV · Contact
Considering Las Vegas new construction? Learn how supply chain delays and labor shortages impact timelines when building your dream Nevada home this…
Dated: January 18 2025
If you’re ready to move up, you may be trying to decide whether you want to buy a home that’s already on the market or build a new one. And since the supply of homes available for sale today is low, you’re willing to consider either avenue. While home builders are doing everything they can to construct more houses and help narrow the supply shortage, they’re also facing delays due to factors outside of their control.
Here’s the latest on some of the key challenges homebuilders are experiencing today and how they could impact your plans to move up. When you know what’s happening in the industry, you can make an informed decision on whether to look for a newly built or an existing home in your home search.
Supply Chain Issues
The first hurdle builders are dealing with is the lack of supply of various building materials. According to a recent article from HousingWire:
“. . . Nearly everything needed in the homebuilding process is facing some sort of delay and subsequent price increase.”
The supply issue isn’t just with lumber, even though that’s what’s covered most in the news. The article explains many other supplies are impacted too, including roofing materials, windows, garage doors, siding, and gypsum (which is used in drywall).
The difficulty in getting these items is dragging out timelines for new homes as builders wait on what they need to finish construction. And since materials are in short supply, even when they do get the product, the principle of supply and demand is driving prices up for those goods. HousingWire explains it like this:
“When supplies are low, charges inevitably go up, . . . Meanwhile, a lack of availability is causing huge delays, meaning builders are struggling to stay on schedule.”
The National Association of Home Builders (NAHB) agrees:
“Builders are grappling with supply-chain issues that are extending construction times and increasing costs.”
Skilled Labor Shortage
But that’s not the only challenge with new home construction today. Builders are also having a hard time finding skilled labor, which means they’re short-handed, further dragging out their timelines. Odeta Kushi, Deputy Chief Economist at First American, says this is an ongoing challenge for the industry:
“The skilled labor shortage in the construction industry is not new – it’s been an issue for more than a decade now.”
But there is good news. The February jobs report shows employment gains in the construction industry. Kushi puts this encouraging news into perspective in the article mentioned above:
“Overall this was a good report, . . . The supply of workers continues to fall short of demand, but the underlying momentum of the labor market recovery is strong, and falling COVID case counts provide further forward momentum.”
That means, while finding workers continues to be a challenge for builders, there are signs of positive momentum moving forward.
How This Impacts You
HousingWire explains how these things can impact move-up buyers today:
“The residential construction industry is facing a crisis as builders manage the critical shortage of building materials and labor. Explosive supply and labor costs are forcing long delays. . . .”
So, when you weigh your options and try to decide between building a home or buying an existing one, factor the potential delay in new home construction into your decision. While it doesn’t mean you should cross newly built homes off your list, it does mean you should consider your timeline and if you’re willing to wait while your home is being constructed.
Bottom Line
When planning your next move, understanding the latest market conditions is key to making the best decision possible. To make sure you have all the information you need, let’s connect. Together we can make sure you know what’s happening in our local market so you can confidently decide what’s right for you, your priorities, and your timeline.
Frequently asked questions
Is building a home a good option given the low inventory of existing houses?▾
Yes, if you cannot find your dream house on the market, building a home can be an excellent way to get exactly what you want. However, it requires navigating current supply chain delays and higher construction costs. Comparing the timeline and budget of a custom build against purchasing an existing home will help you make the best decision.
What are the main challenges when building a home right now?▾
The biggest challenges of building a home today are supply chain disruptions and rising material costs. Builders are experiencing significant delays in acquiring key materials like lumber, windows, roofing, siding, and garage doors. These shortages can prolong your construction timeline and lead to unexpected price increases before the house is completed.
Why are material shortages affecting the timeline for building a home?▾
When building a home, delays occur because nearly every necessary material—from drywall to garage doors—faces supply chain bottlenecks. Builders cannot move to the next phase of construction without these critical supplies. Consequently, waiting for delayed materials pushes back completion dates and increases overall labor and holding costs for the project.
How does inflation affect the cost of building a home?▾
Inflation and supply chain shortages directly impact the cost of building a home. Because building materials like lumber and gypsum are in short supply, their prices have risen significantly. These price increases are often passed on to the buyer, meaning your final construction estimate could be higher than initially projected.
Should I buy an existing house or consider building a home?▾
Choosing between buying an existing house or building a home depends on your timeline and budget. Buying an existing home offers a faster move-in date and predictable pricing. Building a home gives you customization and modern features but requires patience due to current material delays, labor shortages, and potential cost increases.
What building materials are causing the biggest delays when building a home?▾
When building a home, several key materials are causing delays. While lumber shortages frequently make headlines, builders also struggle to source windows, roofing materials, garage doors, siding, and drywall (gypsum). A shortage in any of these components can stall construction and extend your estimated move-in date.