The Sconi

The latest figures on new home construction indicate a notable decline in the number of permits issued, highlighting a significant reduction in new home starts. Data from municipalities across the state reveal that 2,450 permits were issued between July 1 and September 30 this year, marking a 44 percent decrease from the 4,382 permits pulled in the second quarter. While permits increased by 38 percent in the first half of 2021 compared to the same period in 2020, they are up only six percent year-to-date compared to last year's numbers.

"Numbers in the first half of this year were great despite the increased building prices at that time, but we’re now starting to see the effect that peak building material prices have had on the industry," said Wisconsin Builders Association (WBA) Executive Director Brad Boycks. "Many homeowners decided against signing contracts over the summer while they waited for prices to come down."

Material costs and supply chain delays have significantly affected homebuilding. At its height, lumber costs added $36,000 to an average-sized new home's price. Additionally, prices for steel mill products, resins, windows, door frames, copper pipe and tube, and other essential materials rose by 30 percent.

"Remodeling projects have been up with people making changes to their existing homes to avoid the overall costs that building a new home presented over the summer," stated WBA President Abe Degnan. "With the supply chain issues we’re currently experiencing, remodeling and new home construction alike are going to continue to feel the pressure."

David Belman of Belman Homes noted challenges such as low lot inventory and a stabilized existing home market affecting contract signings: "Our production staff is spending more time scheduling, rescheduling, and resourcing our materials for current projects."

Despite these challenges, Degnan expressed optimism about future developments: "The number of new starts and approvals of plats and lots are very encouraging. We have and continue to hope construction prices come down soon as it will continue to drive positive upward growth of building."

The Wisconsin Builders Association represents local associations dedicated to supporting members in building communities statewide. They advocate for affordable housing access for Wisconsin families.