In June, the economy added 850,000 jobs, with the unemployment rate little changed at 5.9%. Residential construction added 15,200 jobs on a net basis for the month, while nonresidential construction lost 22,600. More workers are needed in the construction industry for housing supply to increase. For this to happen — both in construction and the overall economy — labor force participation needs to improve off its current 61.6% rate.

Although labor market challenges have increased, there has been some relief for materials. Lumber market spot pricing has declined about 50%, but these price declines will take some time to reach builders. However, prices for OSB and other materials remain elevated, and a large portion of deliveries continue to be delayed.

These building material issues have had a number of impacts on the industry. Sixty-two percent of builders report frequently raising sales prices, and 59% indicate they have pre-ordered materials to manage supply-chain concerns. Moreover, 45% note including price escalation clauses in sales contracts, and 11% reported cancelling sales contracts on pending sales because of material challenges.

These supply-side challenges are affecting the types of homes available for prospective buyers, as illustrated in 2020 data: The median price of new single-family built-for-sale homes last year was $336,000, and the vast majority (80%) were priced above $250,000. This means the entry-level market remains the tightest part of housing inventory, exacerbating myriad challenges for first-time buyers.

by PBA

Are you a PBA member looking for qualified, knowledgeable employees? Consider contacting the Cumberland Perry Area Career and Technical Center or the Dauphin County Technical School for a list of available graduates.

The HBA is seeking a Builder Member to serve on the Board of Directors. If you are interested, please contact Kristi at kristi@harrisburgbuilders.com.

Absolute Solar and Energy Solutions LLC celebrating 2 years

ARKO Flooring celebrating 5 years

Bennis Public Relations, Inc. celebrating 2 years

Building Solutions celebrating 42 years

James Hardie Building Products celebrating 2 years

Keystone Insurers Group -Deibler, Straub & Troutman, Inc. celebrating 6 years

King's Contracting, LLC celebrating 4 years

Koser Building Materials celebrating 12 years

KSM Log Homes LTD. celebrating 32 years

McCarren Supply celebrating 16 years

Mother Hubbard's Custom Cabinetry, LLC celebrating 26 years

Myers Building Products Specialists celebrating 28 years

Premier Bank celebrating 4 years

Commonwealth Commercial Appraisal Group

Keystone Custom Homes

Tickets are now available for the PAC Cigar & Bourbon night! This pre-NFL game PAC fundraising event will include dinner and other libations. Mark your calendars to join us at the Sons and Daughters of Italy in Harrisburg on September 9. Tickets are $100 per person. Click the button to purchase your tickets today!

The HBA Pyramid Awards will be held at the Colonial Golf & Tennis Club on August 6, 2021 from 5:00 to 8:00 PM. Registration is now open for those who would like to purchase tickets to attend. Complimentary tickets for each company entry were sent out on June 30, 2021. Additional tickets are $75 per person.

Thank you to Presenting Sponsor F&M Trust and Social Sponsor Swartz Kitchens and Baths for sponsoring this event. You can purchase your tickets online using the above button, or you can email tina@harrisburgbuilders.com to reserve your tickets today!

July 30 is the last day for Parade applications. Email jannette@harrisburgbuilders.com for more info.