Home builders

Homebuilder market drops 5% between 2020 and 2021

MADISON, Wis. (WMTV) – Supply chain issues, labor shortages and the price of lumber have impacted the number of homes built in 2021.

The Wisconsin Builders Association reported a 5% drop in home building permit applications in 2021. Twelve thousand permits were retired in 2020 and 11,007 were retired in 2021 in the state.

People want to build homes in Dane County, but it’s hard for builders to keep up with the demand.

“Builders are the busiest we’ve ever been in the past two years,” said Victory Homes of Wisconsin vice president of sales David Roembke. “Probably five years ago we could finish a house in six or seven months. I don’t know if it will ever come back to that. I don’t even know if it’s even reasonable to think that way.

Roembke said it took too long to order building materials.

“Why dig a hole and put a foundation if we can’t get the wood, braid and windows in a timely manner?” asked Roembke.

Wisconsin Builders Association executive director Brad Boycks said lumber prices can add $36,000 to a buyer’s bill.

“If we can reduce that, that would be a big savings,” Boycks said.

He shared that the lumber tariff has recently dropped from 18% to 11% and may make it cheaper to build a house in the near future.

“Specifically lumber, supply chain issues and labor issues, all of which have an impact,” Boycks said. “It was still a bit below where it was from year to year. I think it’s been another very positive year.

Roembke believes the commerce industry is the future. He said young people can pay less for technical degrees, earn more money and have a better life while working in construction. He expects an increase in the number of workers to improve speed and help meet current housing demand.

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