LAS VEGAS (KTNV) — Las Vegas custom home builders and developers have struggled to complete their projects because of the supply chain crisis.
Tamir Saham, the operating partner for Lawrence Homes, says he has been having a hard time with his suppliers who have not delivered orders when promised. He says things are already difficult with a low amount of inventory and high demand for homes.
“We have never experienced a pandemic situation like this,” Saham said.
Saham has been in the home building business for more than 25 years and he has never seen price increases like this. He says the cost for some supplies has gone up by more than 200%. As a result, the average cost of their homes has gone up by more than 20%. Saham says the uncertainty with shipment has made them have to plan well ahead.
“We plan our schedules anywhere from a 12 to 15 construction schedule,” explained Saham. “We really have to be careful, so we don’t get stuck without materials on site.”
This crisis has not only impacted residential developers, but also commercial. Hans VanRiel, the owner of HVR Builders Inc., says a piece of plywood used to be $15, now it is $54.
He says not only has the cost gone up but to get supply is a nightmare.
“They told me they couldn’t fill my order till January of 2022,” said VanRiel.
VanRiel says they have had to cancel some jobs because of the low amount of supply and high prices. He expects prices for real estate to continue to go up exponentially. He says currently it is not a buyer’s market.
“Expect to pay more,” said VanRiel. “You are going to pay more, or you will not get anything.”
Saham says if you find a home you like and the price is right to buy now while interest rates remain low.