Supply Chain Issues Are Affecting Real Estate
COVID-19 led to major disruptions to daily life. Some of the major disruptions came from issues with supply chains. Supply chain blockages were caused by global shutdowns in production along with the increased demand from people who were staying at home. We all experienced longer delivery times with our packages, but did you know that these supply chain blockages affected the real estate market?
Problems in productions led to short supplies and rising prices of construction material. Costs for lumber rose 114% and iron and steel rose over 70%! This means the cost of building a house increased tremendously over the course of the pandemic so more people are looking to buy already built homes rather than building their own.
With the pandemic raging on, inflation has continued to rise, but the demand for goods and services has begun to balance. This means that the pressure on supply chains should lessen and production can begin to recover. The real estate market is still booming as people are selling their homes and people are rushing to buy them. Investing in real estate now could help against rising inflation that will continue post-pandemic. Learn more about the pandemic and real estate in the infographic below: