Development has come to a halt just as this booming city is desperate for housing.

If you're considering purchasing a new home in the Austin market, you should be aware that new construction is experiencing enormous delays, which are much worse than in 2021.

In the hottest U.S. market, homes are flying off the shelves while taking an eternity to construct. Why is this the case? Well, I believe three key factors contribute to the delays.

1: Buyer Demand

There are just not enough homes to meet the demand of the current buyers in the marketplace.

Austin is a vibrant, high-tech metropolis. With that said, some fantastic things are happening in the Austin area. The economy is doing well, and it will continue to do so, but this puts a lot of strain on housing. Many people are moving to Austin for high-paying tech jobs with Oracle, Google, the Tesla factory, and SpaceX, which is expected to open in 2022.

If they aren't moving for a job, people are also moving to Austin for lifestyle. Austin is a place where you can get 300 or more days of sunshine, and you can take advantage of great outdoor activities like cycling, boating, fishing, etc. Also, the cost of living in Austin is very low. As a result, many people have selected Austin as their new home.

2: Supply Chain

Supply chain concerns are the second cause of these large delays. For example, many individuals were experiencing paint delays. Yes, there was a paint shortage, but the base of the paint, not the paint itself, was in short supply, causing delays. Many customers are still waiting for windows to be installed in their homes and have been for months. A problem with lumber has also arisen.

People have get creative and re-envision their plans when it comes to their new home. As the United States deals with ongoing supply chain issues, new home construction will continue to fall short of demand, resulting in fewer new homes on the market. This means that even with rising interest rates, we may continue to see record-high sales prices, so that's one thing to keep in mind. According to Chuck Fowke, the National Home Builders Association senior vice president, home building growth will be slower in 2022, although single-family housing will be roughly 25% higher than in 2019. In addition, Chuck notes that construction expenses are expected to rise 19% in 2022. Some of these supply chain challenges may be alleviated, but skilled labor employees will continue to be scarce.

3: Labor Shortage

This is the third aspect that has contributed to the current construction situation. According to Dr. Horton, a national homebuilder, there is a shortage of truck drivers thus homes are taking seven weeks longer to complete. Because of the labor scarcity, companies must spend more merely to complete jobs. The more they pay the workers, the more they charge the buyer to offset that cost, driving buyers out of the market. 

What can you do?

1: Expect Delays

Ttimetables will be longer because of the current market situation. No matter what the sales representative says about deadlines and dates, add four weeks to anything they say since they don't know when the home will be finished. Before all this, builders were highly punctual, but some factors are beyond their control.

2: Have a Plan

If you've recently sold your house or relocated to Austin and are now renting. Just make sure you have a plan in place so you can go month to month or have a place to stay for a more extended period. Let's say an extra seven weeks, as Dr. Horton indicated was the national norm. Plan ahead of time so you don't have unreasonable expectations about when your house will be finished, which will save you a lot of sorrow and frustration.