Delayed building deliveries mean that developers’ equity remains tied up in existing projects, rather than invested in new ones, further slowing down the new-construction pipeline and leaving builders to assess whether new projects are financially feasible at all.

All of which translates into yet another factor putting a squeeze on inventory and upward pressure on home prices.

“Unfortunately, added costs of construction from the supply chain are going to get passed on to the consumer,” Jones says.

“Things are more expensive,” adds John Young, realtor, Golden Gate Sotheby’s International Realty in California, who is also an independent real estate developer. “You have increased demand from people spending more money on their houses [than they did before the pandemic], then reduced supply from Covid-induced shocks to the material supply chain.”

Even once the supply chain gets back to running at its usual pace, the ripple effects of a construction slowdown could be felt in the housing market for years to come.

“It could be 2024 or 2025 before we see some kind of pickup in new supply,” Jones says. “The entire economics of building a building has really been turned on its head, and it’s going to take a number of years to heal. Then once it heals, it will take a number of years to get the supply.”

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