A Nashville-based supplier of building materials says 2013 will turn out to be a good year for new home construction, even though housing starts were down 10 percent in June.
Despite the slump in housing starts, LP reported $94 million in earnings in the second quarter, compared to a $37 million dollar loss in the same period last year. Image: jekemp/Flickr
Louisiana Pacific CEO Curt Stevens told investors on an earnings call that several factors have held back new home construction this year. “We had very cold weather in April in the northern tier of the US, and unusually wet weather in Texas and the Carolinas in June,” he said. “Builders were delayed by labor shortages, both skilled and unskilled. We also heard about delays in inspections and other local government support services.”
Combine all these, and Stevens says the building of new homes has been delayed by as much as 45 days, leading to pent up demand. So much so, he says builders are concerned about a materials shortage.
Meanwhile, home prices in Nashville and across the country continue to rise. Tomorrow, the Greater Nashville Association of Realtors releases regional housing figures for the month of July.
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