When you think about it, it’s glamorous to sell a house. But home building? Realtors, agents, property managers, gurus. They roll in the dough! Real estate investment certainly sits at a luxurious high for many (as long as you know what and what not to do), and flipping houses comes with it its sense of adventure with ultimate payoffs even when the risks can be high. Here’s the thing, though, about the real estate market — you can’t just know how to sell a house — you have to have a house to sell!
Home Building Is by Far the Key Ingredient to a Healthy Real Estate Industry
It’s a cracked shell, though, because this is where we struggle in a big way. Yes, you have to be skilled, and it can pay a great deal of money; but more often than not, this is an industry that often sees great turnover, plus lack of experience and trustworthiness. Contractors far and wide struggle to find enough manpower to get the job done and build those houses so badly that oftentimes the inventory falls behind as demand continues to grow in this market like weeds on your front lawn. It’s not pretty.
What makes the home building industry suffer currently? We’ve found two major reasons why we’re seeing a lag in home building, and you might be a bit thrown off by them!
The Employment Market Certainly Makes Its Mark
It’s true. How the job market fluctuates can, and has, done a major number on the home construction industry for a good number of reasons — when the home construction industry slows down, what do you think happens to those qualified and dedicated construction workers who can’t seem to find enough of the projects for payment to put food on the table for their families? They look for other types of work.
Immigration Law Does It Even Worse….
In all fairness, of course, the law is the law, and if people are residing on U.S. soil illegally, something does have to be done. But the immediate consequence is this — contractors are now losing a major percentage of the potential workforce for those willing to bask in the heat on a roof while putting on new shingles. Get the picture?
It’s an Unfortunate Truth About Home Building
Creativity can get us out of it, though…. When houses need to be built, contractors simply had to dig down and find the people out there willing to make it happen. Because while we can sell homes through social media — Pinterest, Twitter, and Facebook — without a problem, we need the manpower to make sure there are some good quality housing out there first.
Let’s focus on that element of the real estate market that truly does matter the most: home building.