The residential construction business continues to rebound, both in demand for new homes and for renovations, yet builders are saying they can't ramp up fast enough in the wake of the housing crash.
Spectrem Group released a study of individuals with a net worth of $25 million or more that reveals that in the last 12 months, more than a third of the respondents spent in excess of $25,000 on home renovations. That's good news for the building industry, which lost 70 percent of its business during the recession, according to CNBC.
Demand for new homes is improving every quarter, but skilled workers, including painters, roofers and plumbers, are hard to come by. Many moved to other trades during the long period of low construction activity and the industry wasn't attracting new workers who didn't see opportunity. That means builders are forced to accept fewer projects and face delays, both of which cut into profits.
Builders are eager to solve the dilemma to take advantage of rising home prices, but labor costs have gone up. Since the end of the housing bubble in 2006, new, eco-friendly building regulations have been established and wages for skilled workers have increased.
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