Supply chain crisis puts manufacturers and developers in trouble
LAS VEGAS (KTNV) – Custom home builders and developers in Las Vegas have struggled to complete their plans due to the supply chain crisis.
Tamir Saham, Lawrence Homes’ operating partner, says he’s struggled with suppliers who haven’t delivered orders as promised. He says things are already tough with low inventory and high demand for homes.
“We have never experienced a pandemic situation like this,” Saham said.
Saham has been in the residential construction business for over 25 years and he has never seen price increases like this. He says the cost of some supplies has increased by over 200%. As a result, the average cost of their housing has increased by more than 20%. Saham says the uncertainty surrounding the expedition forced them to plan well in advance.
“We plan our timelines from a 12 to 15 construction timeline,” Saham said. “You have to be really careful not to end up without equipment on site. “
This crisis has not only impacted residential developers, but also commercial ones. Hans VanRiel, the owner of HVR Builders Inc., says a piece of plywood used to cost $ 15, now it costs $ 54.
He says not only has the cost gone up, but the supply is a nightmare.
“They told me they couldn’t fulfill my order until January 2022,” VanRiel said.
VanRiel says they have had to cancel some jobs due to low supply and high prices. He expects real estate prices to continue to rise exponentially. He says right now it’s not a buyer’s market.
“Expect to pay more,” VanRiel said. “You’re going to pay more, or you won’t get anything.”
Saham says if you find a house you like and the price is right, buy it now while interest rates stay low.