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Top 8 U.S. Home Builder Concerns in 2013


What are the top challenges facing America’s home builders this year, and how can you capitalize on the knowledge of their fears and your unique advantages to make better real estate investment choices this year?

The following are 8 of the top concerns listed by builders in January 2013 according to the monthly National Association of Home Builders/ Well Fargo Housing Market Index survey…

  1. Building material prices
  2. Cost/ availability of labor
  3. Cost/ availability of developed lots
  4. Health insurance
  5. Other building code requirements
  6. Energy efficiency requirements
  7. General liability insurance
  8. Workers compensation

Some of these may be surprising to real estate investors, others might not seem like they are that relevant to the independent investor. However, you can bet the incredibly well funded home builders quizzed by the NAHB have done their homework and have been in the game long enough to recognize a challenge when they see one. They may not always get the upside right, but they are no doubt apprised to anything that could be a threat given what they have gone through in the last few years, and not wanting to lose the great gains made more recently.

Clearly insurances and new government regulations make up a big portion of these concerns. As a solo real estate investor they may not affect you yet but they but as you grow and ramp up your volume and portfolio they could, so it pays to be ready for them.

For those still deciding between real estate strategies this also offers some insight into the challenges of maintaining your own in-house property management staff and getting heavy into rehabbing homes for flipping.

Know your advantages, whether it is agility or being able to get the job done cheaper and find the opportunities which yield the best rewards for the effort put in.

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