The Impact of The Supply Chain on Residential Home Prices

In this episode of Location Cubed, host Rob Nowak, a Tax Partner with Weaver, sat down with Howard Altshuler, Weaver’s Partner-in-Charge of Real Estate Services. The two discussed the impact of the supply chain on the recent spike in residential home prices.

Pre-covid, everything was moving along fairly smoothly for the supply chain; however, COVID-19 brought restrictions, lockdowns, and people hoarding things. “It kind of started to gum up the supply chain,” Altshuler said. “Traffic internationally started slowing down, and it’s almost like it comes to a stop, and then it takes a while to start up.”

According to statistics, if you were to shut down the supply chain for a year, it takes about three to five years to set it back up to full capacity from both a production and logistics standpoint. “That’s a lot of what we are dealing with from a standpoint of materials in any type of stuff,” Altshuler said.

Not surprisingly, this relates to the recent spike in residential home prices. “Building material prices are way higher if you can get them. That’s obviously turning into higher home prices,” Altshuler said. Demand is the second component of this. Months of inventory fell to 1.4 months as active listings remained retracted while demands skyrocket, according to data from the Texas A&M’s Texas Real Estate Research Center.

The two discussed alternatives to homeownership, including the build-to-rent model being a remedy for the home supply shortages and the sustainability of positive growth rates in non-metro areas compared to negative rates for metro areas as remote work persists.

Follow us on social media for the latest updates in B2B!

Latest

POV cameras
Marshall Electronics Responds to Esports’ Massive Growth with Cutting-Edge POV Cameras
June 3, 2023

As we head into the middle of this decade, the eSports industry is witnessing an unprecedented boom. Valued at $1.42 billion in 2022, it’s projected to skyrocket to $4.47 billion by 2030, thanks to the rising adoption of smart devices and POV cameras, internet connectivity, and strategic partnerships like that of Microsoft and NVIDIA​. […]

Read More
legacy payment companies blockchain solutions partnerships
Legacy Payment Companies Embrace Blockchain Solutions. Their Infrastructure is Still “Fundamentally Not Aligned” with Web3 Payments.
June 2, 2023

Legacy payment companies are finally embracing blockchain solutions at scale, though still behind compared to the innovation that young fintech companies are bringing to the next generation of payment solutions. Regardless, this embrace is taking many shapes, and it’s still not a guarantee that they’re up to the task. In the last year, Visa […]

Read More
legal counsel
The Importance of Legal Counsel to Major League Organizations
June 2, 2023

Live sporting events continue to be at the forefront of entertainment in America year after year. Between enthused fans, good food and drinks, and anticipation for record-breaking moments, the ambiance of a stadium on a game day is unmatched. However, behind the scenes of our beloved stadiums and sports traditions lies term sheets and contracts […]

Read More