LAS VEGAS (KLAS) — Las Vegas is dealing with a housing crisis, and prices are rising as developers can’t build fast enough.
It’s the perfect storm, raw products needed to build needed homes are hard to get. But even more frustrating, there really isn’t a solution.
The construction industry is experiencing unprecedented issues with obtaining the materials to produce ready-mixed concrete.
Alan Sparkman is the executive director for TN Concrete Association and expanded on the issue.
“There’s a bit of a shortage, a restricted supply of Portland Cement,” he said.
Ready-mix producers can only supply a limited amount each week, forcing contractors to schedule pours further in advance.
“A big issue for the concrete industry and heavy hauling industries is what has happened to the cost of diesel that has caused prices to escalate for concrete,” Sparkman said. “For anything else that comes in on the truck.”
The National Association of home builders reports building material prices increased more than 20% year over year, and are up 33% since the start of the pandemic.
Bruce McNeilage is the co-founder and CEO of Kinloch partners and describes how the changes have impacted the industry.
“You pour the concrete pad then you buy the lumber you start building the house framing house and those two things have gone through the roof then everything else windows doors its gotten so crazy so all of these builders either cant build or can’t give you a price,” he said.
By the time the house is built, the hopeful buyer is bamboozled, rising interest rates, make matters worse.
“The Mom and Pop middle-class person who was scraping enough money to buy a house can no longer afford it,” McNeilage added.
A sad reality that will continue until the supply chain catches up and demand drops.
Concrete is not the only product with rising costs. Most home-building products are more expensive since the pandemic began. At the top of the list is softwood lumber, which is up 37% in 2022.