If you live in Greater Philadelphia, we bet that you probably see at least a handful of new construction communities everyday on your commute to work. Some of the area’s most prominent builders (think Orleans, Ryan, Paone, Toll, and Philomeno & Salamone) are creating beautiful new neighborhoods throughout the region – but is it enough new construction to meet the demand for housing?
In the Delaware Valley and across much of the nation, the real estate industry has been facing a significant housing shortage. Due to fierce competition among buyers, home values have increased rapidly and new construction is expected to grow. However, 61% of builders surveyed by the U.S. Chamber of Commerce report difficulty finding skilled labor. This is especially true for electrical, plumbing and masonry trades. Industry experts explain that the shortage is likely due to tens of thousands of construction laborers leaving the industry during The Great Recession as well as an aging workforce population.
As a result, fewer homes may be built in late 2017 and 2018. The latest Residential Sales Report by the U.S. Department of Housing and Urban Development suggests that housing starts have decreased in the past year and will result in fewer (and more expensive) new construction homes in the coming year.