20 Aug The Bumpy Road to Recovery
Residential Construction Marketplace
The Bumpy Road to Recovery
Many industries have been impacted by the 2-year Global Pandemic and recent, major world events and the residential construction industry in Atlantic Canada is no exception. The demand for goods and services related to housing has far outstripped supply during the slow recovery from these events.
The ongoing war in Ukraine has driven up commodity prices, a strong US housing industry has raised lumber costs and depleted supply, and China’s zero covid policy has led to supply chain disruptions as their factories and ports shut down. The Covid 19 virus has impacted staffing and scheduling of projects due to absence or reluctance of qualified persons to return to the workforce. Unemployment rates are at an all-time low and the Bank of Canada estimates the demand for goods and services is becoming greater. Skilled labour shortages and scarcity of product has led to rapid price increases and runaway inflation throughout the housing sector.
Economists have forecasted that new home construction will remain strong in Atlantic Canada for the foreseeable future, and that volatility and uncertainty will remain high for the remainder of 2022 and into 2023.
Homeowner Frequently Asked Questions
1. Q: What does this mean to me as a homeowner?
A: Builders are doing their best to manage the uncertainty. Our world is rapidly changing and none of us have all the answers, so it is vital for all participants to be patient and ask questions about the status of their projects and client’s situation. Homeowners and builders must remain flexible and adapt to the changing environment throughout the building process
2. Q: What is the best strategy to keep on top of the changing environment?
A: Candid, accurate communication during this period should be of top priority between the homeowner and builder. Transparency and understanding are required by both parties to achieve a successful outcome. Working amicably together towards solutions to problems that arise is also key.
3. Q: What can we do to minimize the impacts?
A: Thoroughly reading and understanding contractual agreements and discussions about different scenarios and possible outcomes is needed. Also, having a clear understanding by the Homeowner, Builder, Realtor and Lawyer surrounding inclusions, timelines, obligations, and payment terms.
4. Q: How do I manage cost?
A: When you’re dealing with uncertainty, it’s incredibly important that both Builders and Homeowners have a firm grasp on their budget to quickly respond to changing market conditions if required.