Shortage of cement contributes to price increase for housing

Published: Jul. 14, 2021 at 10:53 PM PDT
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RENO, Nev. (KOLO) - Construction companies are feeling the pinch from the dramatic increase in prices for building materials as a result of this pandemic. This jump in cost has made housing even less affordable than it already is.

The nationwide shortage of cement has made projects at local construction companies difficult to complete. Last year during the peak of the pandemic there was an increased amount of building and home improvement. But Sean Madole, President of Madole Construction, said restrictions on businesses during the pandemic are causing delays for products.

“It is difficult to obtain materials. Some of these materials are not available so you are having to go back to your engineers and make substitutions,” Madole said.

According to the Reno/Sparks Association of Realtors’ Home Sales Report released in May, the median price of an existing home in the Reno-Sparks region stood at $502,000. Madole said it will go up more if these prices continue.

“It has to go into the cost, because people are not going to build a house if they can’t make money doing it, so they pass it along to eventually someone who is going to buy it,” explained Madole.

Madole said there is a high demand for projects. Developers are trying to make more homes, but he said their biggest problem is the availability of concrete. Ready Mix Concrete suppliers have been placing contractors on weekly limits, which has delayed the expansion of more housing.

“It prevents them from getting their jobs done and they have to break their jobs into small pieces so it creates more logistic and planning problems,” said Madole.

Madole said they are working with their engineers to find more affordable alternatives to complete their projects and meet the demand for our fast-growing housing market.

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