How the supply chain issues are affecting real estate
From major appliances like ovens and dishwashers to lumber to the smallest pieces of pipe, items needed to build or fix up homes have become torturously hard to come by as the global supply chain issues drag on. And this impact is being felt in all corners of real estate.
Homeowners whose stoves or washing machines stop working are having to wait months on replacements. Builders need dishwashers and dryers to install in the homes they plan to sell.
Global supply chain issues have led to a backlog of nearly $3 billion in goods that have been ordered but not yet shipped, according to U.S. Census data. Even if the appliance is made in the U.S., many use parts and computer chips that are made abroad. So if those are held up in the supply chain snafus, the appliances can’t be manufactured, holding up the whole system for everyone.
Shortages of wood are making it harder to produce things like coffee tables, bookshelves, or even wooden sofa frames. Adding to the problem are international shipping delays. Since a large share of the furniture purchased in America is made in Asia, folks are having a harder time getting what they want.
Those who order furniture are now having to wait months for their items to be delivered instead of weeks. Looking ahead, economists project these issues will persist at least through the next year. The industry is projecting delays for customers until sometime in 2023, even while the demand for home furnishings is expected to remain high for the next 18 to 24 months, according to Mark Schumacher, CEO of the Home Furnishings Association.
While delays are sometimes inevitable, builders are working with clients to make selections in a timely manner and pre-order cabinetry, windows and doors to make the construction process as smooth as possible.
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