I’m honored to announce that in 2022, I’ll be serving as the president of the Builder’s Association of Northern Nevada. Today I’m sharing four things to expect from the new-home industry next year so you can better serve and educate your clients:
1. Lot supply will be limited. In the Greater Reno-Sparks region, lot supply will be tight, which isn’t the greatest news. The good news is that there are some master-planned communities expected to bring thousands of lots to our market… but not until early 2023.
2. More investment and resources from big-name builders. They’ll be building in the periphery markets such as Fallon, Dayton, Carson, and more. So the lot squeeze is funneling more resources and investment to the outlying markets, which should bring more opportunities, selection, and lower prices as people decide to drive a little further from the Reno-Sparks area.
“This is a mix of good news and a dose of reality.”
3. The hyperinflation of materials should slow. Supply chains are starting to catch back up, but price increases won’t completely stop. However, we don’t believe the prices of materials will fall dramatically. We expect more supplies and materials to become available.
Check out this detailed breakdown of building material prices from NAHB.
4. A continued struggle with the lack of skilled tradespeople in the market. We need to be patient and educate our clients about the lack of everyone from truck drivers to plumbers. It’s going to take longer to build homes, and there will be schedule delays. On top of that, we’ll continue dealing with loan lock extensions and issues with coordinating moving time frames. We have a limited pool of tradespeople to pull from nationwide, and there aren’t many people entering those trades. So for the time being, construction schedules will be longer than we’d like.
I know this is a mix of good news and a dose of reality. Our job as brokers and real estate agents is to be aware of what’s going on and guide our clients to make the right decisions for themselves.
If you have questions about this or any other matter, by all means, shoot me an email or give me a call. I wish you great success in your real estate practice.
