Pandemic creates challenge for Colorado home builders despite high demand
MONUMENT, Colo. (KRDO) - The coronavirus pandemic has upended the home construction industry, with everything from supply and staffing shortages, to lumber prices affecting the process. Demand for homes in Colorado has also skyrocketed over the last two years.
Data from the Pikes Peak Association of Realtors shows from December of 2020 to December of 2021 the average price of a single-family home is up 17.9 percent from $417,238 to $492,087.
The National Association of Home Builders says nationally, rising lumber prices in 2020 and early 2021 caused the average price of a new single-family home to increase by nearly $30,000.
Dakota Shafer, Owner and Builder for GJ Gardner in Colorado Springs says his business has definitely noticed an increase in the cost of lumber.
"We saw lumber prices double from January 2021 to June 2021, and since last year, at this time, they've increased 18 percent," said Shafer. "We've just been working with our suppliers to keep an eye on that number and are adjusting accordingly.”
The biggest issue for builders right now is the supply shortages that are still going on as the pandemic stretches into multiple years. Everything from faucets, to trusses, to garage doors are on backorder. Shafer says right now the lead time for a garage door is about 42 weeks.
"A lot of manufacturers have limited the number of SKUs that they do, so there's less availability of items out there right now," said Shafer. "So, while in the past you maybe had 20 different facets to choose from, that number is now maybe twelve from a certain supplier.”
Also adding to delays: the incredible demand for new houses.
"You can see across the board the appreciation that's happened here locally," said Shafer. "Lots of people are moving in from other states and from out of town. We've had some calls from the Louisville Fire folks looking to maybe get on more acreage and make a move down closer to Colorado Springs because believe it or not, it is still more affordable than up north.”
The hot housing market in Southern Colorado likely won’t slow down any time soon. Which is why home builders are finding creative ways to finish projects on time, including letting homeowners move in before the house is completely finished.
"The Pikes Peak Regional Building is working with us; they understand the issues with supply chain," said Shafer. "They're doing TCOs, their Temporary Certificate of Occupancy, and will allow people to move into their home when it's mostly completed. All of the issues with safety are taken care of, it may be just little things that need to be finished. It's not ideal, but it does take care of their need to move in on time.”
While the pandemic has added stress for local builders and homeowners, it has also allowed them to think outside the box and find unique ways to complete tasks.
“I think it’s made us stronger," said Shafer. "I think it's the ability to change and to look at the same problems in a new way. Like ordering material sooner than we ever have before, being more prepared as we go into a build, having color selections done, and being able to order those materials well ahead of time so that we actually get them and can install them. And in a good period of time, close on the home.”
Shafer says though several factors can change or delay the move-in date for a new homeowner, GJ Gardner has seen a typical timeline of about 10 to 12 months from initial meeting to move-in.
