Top Ten Critical Issues for Builders
Average rating on a scale of 1 to 5, with 1 not at all critical and 5 as very critical
Source: State & Local Government Affairs Dept.
- Liability Insurance/Cost 4.49
- Liability Insurance/Availability 4.26
- Lumber Price and Supply 4.25
- Development Approval Process 4.22
- Development Costs 4.18
- Impact Fees/Development Exactions 4.17
- Cost of Lots 4.15
- Availability of Lots 4.10
- Growth/No Growth Attitudes 4.08
- Workers’ Compensation 4.04
2003-2004 Critical Issues Survey
Executive SummaryNAHB’s Critical Issues Survey was conducted every quarter until the 4th quarter of 1999 and every six months during 2000, 2001 and the first half of 2002. For the last two years, the survey has been conducted annually covering July 2002-June 2003 and July 2003-June 2004.
Officers from local and state home builders associations are asked to rate 75 issues on a scale of 1 to 5, where 1 = Not at all Critical and 5 = Very Critical. Seventy-five issues are covered under eight different major areas, including:
- Environmental Regulations
- Land Development and Zoning Regulations
- Growth Policy
- Business Management
- Construction Codes
- Liability Insurance
Liability Insurance Cost and Liability Insurance Availability continue to be the #1 and #2 issues since 2002 when the issues began being included in the survey questionnaire. Liability Insurance Cost was ranked the #1 or most critical issue with a rating of 4.49 (on a scale of 1 to 5) followed by Liability Insurance Availability at 4.26.
Lumber Prices and Supply, which ranked number 33 during the last survey period, was ranked #3 in the latest survey with a rating of 4.25. Development Approval Process and Development Costs were ranked #4 and #5 with a rating of 4.22 and 4.18, respectively.
Mold, which ranked #4 in the January-June 2002 survey, was ranked #11 during July 2002-June 2003, and dropped further to #29 during July 2003-June 2004.
Labor availability, which ranked #1 for 11 quarters between 1998 and 2001 and ranked 5th during the first half of 2002, dropped to #11 during July 2002-June 2003 and dropped further to #14 during this survey period.
Ranking of building materials and supply moved up significantly during the current survey period. Cement Prices and Supply was ranked 10th during July 2003-June 2004, up from #43 during July 2002-June 2003. Gypsum Board/Sheetrock price and supply moved to #16 during the current survey period up from #43 during July 2002-June 2003. Insulation price and supply moved to #20 during July 2003-June 2004 up from #42 during July 2002-June 2003.
Regional Differences in Issues
Liability Insurance Cost is the number one issue nationally and also the top issue in Regions C, D and E, #3 issue in Region B and the #7 issue in Region A.
Liability Insurance Availability, which is ranked #2 nationally, is also #2 in Region E, #3 in Region D, #8 in Region C, #7 in Region B and #13 in Region A.
Lumber Price and Supply, which is ranked third nationally, is ranked secod in Regions C and D, seventh in Region A and eighth in Region E.
Development Approval Process, which is ranked fourth nationally, is ranked #2 in Region A, #3 in Regions B and C, eighth in Region D and ninth in Region E.
Region A = CT, DE, DC, ME, MD, MA, NH, NJ, NY, PA, RI, VT, VA
Region B = AL, FL, GA, NC, PR, SC, TN
Region C = IL, IN, IA, KY, MI, MN, ND, OH, SD, WV, WI
Region D = AR, KS, LA, MS, MO, NE, OK, TX
Region E = AK, AZ, CA, HI, ID, MT, NE, NM, OR, UT, WA, WY
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