Lack of skilled workers leads to increase in building costs and home prices

The housing market in Lincoln is booming, and chances are if you’re selling your home, it won’t be on the market for long. 

Right now, about 800 homes are listed as “For Sale” in Lincoln.

Although that is less than a few years ago, the lower amount of listings makes the market more competitive.

“When listings come on the market in that first time home-buyer range and if it’s a good house and a good price, it’ll be gone right away,” said Gary Hardt, an agent with HOME Real Estate.

Despite these houses being scooped up quickly, experts say housing prices continue to rise about 3.5% every year.

Home Builder’s Association of Lincoln President Denny Van Horn says part of that has to do with the lack of lots to build on, and the cost of labor.

“We’re at the highest land prices, highest material prices and highest labor costs in the history of home building, and so it all raises the cost of affordable housing,” Van Horn said.

The labor shortage in Lincoln hasn’t been as noticeable as other places in the country, but as the city of Lincoln annexes land for new homes to be built, that could change.

“Once those come on the market, then the new construction business will probably explode to a higher level,” Hardt said.

With the current amount of workers in the trade job field, home builders are foreseeing a bigger issue down the road: more jobs, less hands, and higher costs.

The Home Builder’s Association of Lincoln says that’s why a focus on the trades is as important as ever, because as the city grows, so does the need for skilled workers.

The HBAL is always willing to introduce people to the world of trade jobs, so if you’re interested in pursuing this kind of career, you can find out more information and how to contact them here.