Forecast: Strong Housing Market to Continue in 2022

Monthly Briefing

Profits | Relationships | Knowledge

December 2021 Volume XVI, Issue 12

By Charles C. Shinn Jr., PhD

Founder, Builder Partnerships

The housing industry has been a strong sector of the economy again in 2021. Housing began this decade with strong demand generated by millennials and baby boomers on the move. The decade started with a severe housing deficit of approximately 3.8 million homes according to Freddie Mac. Inventories of both existing and new homes for sale are at historic lows. During the last decade, the ability of the home building industry to respond to the housing shortage was diminished by the housing recession with the loss of about half of the home builders, trade contractors and tradesman.

2020 began with very strong home sales prior to March 12, when the pandemic closed down the country. Housing recovered immediately after the shutdown with exceptionally stronger housing demand. By the beginning of 2021, there was effectively no available inventory of existing or new homes with 1.9 and 3.6 months respectively of for-sale homes supply.

Tools for Success, Industry Insight, Networking

The future of home building belongs to forward-thinking home builders who are willing to adopt state-of-the-art production processes and who see value in implementing time-tested management techniques.

Home building is a manufacturing process. When builders combine production processes borrowed from the manufacturing industry with a disciplined approach to managing the operation, they have a formula for success that leads to improved productivity, performance, and quality.

The home building industry has been slow to capitalize on advances in technology. It’s about time for home builders to prepare for a future that’s already here.

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Lumber Prices: Effective Strategies for Uncertain Times

By Ed Hauck

Senior Consultant, Shinn Consulting

The only certainty with lumber prices these days is uncertainty. Lumber availability, housing demand, and supply chain issues all play a role in price volatility. Although some analysts are predicting lumber prices will stabilize in the coming months, the question remains at what price point will they level off?

Pre-pandemic prices for lumber were between $350 and $500 per thousand board feet. In the spring of 2021, we saw prices as high as $1,515 per thousand board feet. The cash market price of framing lumber hit $915 per thousand board feet earlier this month. There could be another spike in prices in the spring of 2022.

There are steps home builders can take to weather the storm and protect profit margins in these uncertain times.

People’s needs change constantly, even in the same room. They can be hard at work one moment, and entertaining friends the next. Warm Dim gives people the flexibility to choose the light that’s right for them by dimming from vibrant, full-spectrum lighting to warm, comfortable illumination.

Combining dimming with shifting color temperatures makes intuitive sense. After all, we often notice that light sources warm up as their intensity goes down in the natural world. At the core of Warm Dim is the profound human relationship with light and color.

Application Deadline is December 31, 2021

Homebuyers are seeking homes that offer flex spaces for versatility and convenience. In fact, according to a Meyer’s research study, 68% of homebuyers want to personalize their home. From home schooling kids to working remotely, homebuyers want the ability to customize the space in their home to accommodate their needs.

Having a workspace or home office is now a must-have. In fact, one home office may not be enough as homebuyers now need more privacy and personal space for the entire family.

Meet our consultants in person. Contact our office to schedule an appointment, or stop by and see us in booth W6753.

Builder Members: Deadline for ALL 2021 Rebate Submissions is January 10, 2022

As you prepare your submissions, take a look at our directory of manufacturer members to make sure you are submitting for all applicable rebate programs to maximize your returns.

If you need assistance with your submission and/or log-in credentials, please reach out to your BP relationship manger with questions.

Meet Our Trusted Service Provider Members

We ensure our builder members have access to premier service provider brands to offer the quality and functionality needed to attract buyers and close the sale.

Partner Notes

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