Homebuilding Experts Discuss Challenges

Credit: AZ Big Media

Valley Partnership’s first in-person event since the start of the pandemic featured a discussion on the state and challenges of homebuilding in the Greater Phoenix market.

KASA Development President Jim Belfiore noted demand is down 31 percent from its May high, but speculative inventory has dropped 78 percent year-over-year and prices have risen 29 percent. He predicted as many as 35,000 permits could be issued by the end of 2021.

HilgartWilson Principal Ron Hilgart noted the lack of available labor is a primary drag on the rate of construction, leading to delays. Lennar SVP Jeff Gunnerson said a home that should take five months to build now takes as long as seven.

Hilgart also noted increased materials prices have dramatically driven up costs and diminished the availability of building supplies. (Source)

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