Rehab / Construction materials shortages?

4 Replies

Hi every one - I am presently invested in SW Florida where I own five rental SFHs, and have recently bought two lots and contemplated building on them.  I was told by my broker that there are supply problems resulting from the pandemic and the sudden drastic increase in constuction materials demand in Florida.  Do these issues exist in the Columbus, Cleveland and Indianappolis markets?  Would these present issues for rehabbing properties in thses areas also?   

Originally posted by @Mark Burke :

Hi every one - I am presently invested in SW Florida where I own five rental SFHs, and have recently bought two lots and contemplated building on them.  I was told by my broker that there are supply problems resulting from the pandemic and the sudden drastic increase in constuction materials demand in Florida.  Do these issues exist in the Columbus, Cleveland and Indianappolis markets?  Would these present issues for rehabbing properties in thses areas also?   

 Yes these supply issues are in Columbus, Ohio as well.

Originally posted by @Mark Burke :

Hi every one - I am presently invested in SW Florida where I own five rental SFHs, and have recently bought two lots and contemplated building on them.  I was told by my broker that there are supply problems resulting from the pandemic and the sudden drastic increase in constuction materials demand in Florida.  Do these issues exist in the Columbus, Cleveland and Indianappolis markets?  Would these present issues for rehabbing properties in thses areas also?   

 Oh yea dude. This is a nationwide issue. There is no market here in the USA that's immune from the Covid fallout.

@Mark Burke  

2x4x8 in 2019 =$4.83

2x4x8 in 2021 =$7.93

At least you did not start building during the supply shortages and get a quote increase of $70k from your contractors original bid. I've seen it happen a couple times.

Most common materials for light renovation work are still the same here....paint, flooring, etc...

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