Navigating Uncertainty in Homebuilding
Challenges, Innovations, and the Path Forward in a Shifting Market
Published March 14, 2025
False Start
Though any of us who’ve lived in Colorado for more than a season know, it may seem Spring has sprung, but we know better. Don’t we?
Gripped by Uncertainty
I know many of us are waiting for Spring or at least a thaw in building. Yet, the overwhelming feeling I got from the many conversations I had with builders, manufacturers, suppliers, and other rating companies while attending IBS, was uncertainty. A few months ago, we were getting a message of cautious optimism. Now it seems it is just caution. I know that all of us who not only depend on but believe in the value of homebuilding and its critical role in our country and economy are worried about tariffs. I know there is also worry about the construction labor force and what may happen there.
IBS Las Vegas, February 25-27, 2025
Economic Forces at Play
At the same time, the complex nature of our economy means that despite sticky inflation, rising unemployment, and decreased growth may induce the Fed to reduce interest rates, which would be good for homebuilding. But who knows and who can tell which of these competing forces will have what effect? It’s no wonder that uncertainty reigns.
What We Know for Sure
And for all of that, we know two things with certainty. One, we need to build many more housing units across the country. Two, housing attainability is worse than ever. We all know these things and, while I make it part of my job to pay attention to potential solutions - modular building, regulation reform, incentives, etc. I see little that looks like it will move the needle in a meaningful way any time soon. Though, taken together and pursued with energy, perhaps the solutions are in front of us.
Searching for Solutions
This all may sound truly negative. It is. But, crisis is what drives innovation more than any other thing. I also believe that those of us who’ve made our careers in homebuilding will almost surely be part of the solutions as they arise. We find ourselves, again, in trying times despite what should be a bright future.
Strength in Partnership and Collaboration
A final thing that I know, is that we appreciate the partnership and collaborative spirit of all the builders and trades we work with. Together, we will navigate these challenges and build a stronger, more resilient future for our industry.
About the Author
2 Comments on “Navigating Uncertainty in Homebuilding”
Hello from the Great Lake Erie!
I truly appreciate your comments. I wondered what the IBS take away would be.
I have been following Phius.org for about a year. I built a home on Lake Erie 5 years ago. Unfortunately, the builder we chose wasn’t about zero anything. I was unable to do a number of things I dreamed of. This area is not to keen on accepting energy efficiency in building. I advocate for the more we talk about it and ask builders for it, the more things will advance as needed.
I wish to downsize and and build a smaller, still a bit of luxury, but more energy efficient, safe and resilient high performance, passive as can be home. Trouble is, all the wonderful ones seem to be in Colorado and other places. Not on Lake Erie.
Can you recommend who would be interested in consulting and helping me pull this off in this region?
I appreciate all of what your company stands for and wish you the very best in moving these initiatives forward.
Sincerely,
Keleen
Hi Keleen,
We’re happy to try to point you in the right direction. Could you tell us where on Lake Erie you’re trying to build?
Thanks,
EL Team