Q: Supply Chain Shortage Affecting the Housing Industry?
A: YES!
What’s the deal with lumber prices? The internet is ripe with lumber price memes. Cost of lumber and other construction materials coupled with the lack of skilled workers has caused a drop in housing starts. No surprise. News reports show cargo ships waiting to dock and criticize our reliance on foreign products. I’d say, “hold that thought”. Many products labeled “Made in the USA” are still reliant on pieces or chemicals made abroad. As stated in a previous blog, AKB cabinetry suppliers are American companies that have stayed in production without any interruption. Their dependence on overseas suppliers to create quality, price effective product is kept at minimum.
The cost of real estate has risen to record highs according to published reports from Fannie Mae. 2022 is projected to cool off but prices will still be sitting at record highs. Potential sellers eager to fetch top dollar for their homes have had to consider what they could afford on the other side. Interest rates at historically low levels are almost a wasted opportunity for many people. Mortgage Banking Association predicts that interest rates will rise to over 4%, but consider:
In 1981, the annual average was 16.63%. (Sobering)
So imagine:
30 year loan for 100k at 16%= $1345/month (484,112 Cost) vs. 30 year loan for 100k at 3%= $422 (151,777 Cost)
Safe at home strategies morphed into ENJOYING being safe at home. “Flush with stimulus checks and all the money they saved from not going out or on vacations, Americans stuck at home decided to fix up their abodes.” A further observation: The pandemic remodeling rush was also fueled by people wanting SOMETHING TO DO.
Here we are 20 months into this ordeal and AKB is still meeting client expectations. Our suppliers are working hard. Our installers are working hard. Our designers are working hard. Call us at 859.268.0800 if you’re contemplating a remodeling project.
