Historically, April and May are peak months for a high volume of houses going on the market, giving potential buyers several options. However, this spring might lack the traditional spike in the volume as inventory has been in decline for years. Alternatively, buyers are looking at options such as purchasing land to build a home or remodeling their existing home.

Eric Rabesa, owner of Rivertree Custom Builders, said the trend toward building has put a high demand on builders’ availability and is driving up the cost of construction. “We are booked through 2018. We booked up for 2018 in October 2017,” Rabesa said.

According to Rabesa, another issue with the high demand in building is finding available subcontractors, due to a shortage in the local labor force. “I can’t sign up to build a house if I don’t know whether I can get subcontractors lined up,” Rebesa said. Building costs on new construction are now typically over $300/sq. ft; this makes construction on the lower cost market segments needing the most supply very challenging.

Frank Becker, owner of Becker Design/Build, said that due to the high cost of building, he has seen an increase in remodeling jobs. “With the cost of purchasing a lot plus construction, a homeowner can do some renovations on an existing home for less than new construction,” Becker said.

The decrease in residential housing inventory has generated an increased interest in spring construction and remodeling as options for first or second home buyers. The mild winter weather provided an earlier start in the season for builders, bringing more new homes and opportunities to the market. It remains to be seen if the new supply will catch up with increasing demand.