Florida and Texas in Need of Construction Workers and Supplies

The recent unwelcome visits by Hurricanes Irma and Harvey have created ongoing negative impacts for real estate investors nationwide. Labor and construction supply shortages have driven up costs on everything from new projects to simple repairs. And things are about to get worse.

Around six hundred thousand homes in Florida and Texas have been left in need of repairs and new roofs. The NAHB estimates that Texas alone will require ten to twenty thousand additional construction workers to aid with repairs.

Construction labor throughout the country has already been stressed to keep up with demand. The recent hurricanes will only further strain an already tight market. Aaron Terrazas, a senior economist at Zillow, told Reuters, “Construction employment typically peaks from 10-12 months after a major storm – so prices (of building materials) should remain high for quite some time.”

As the cost of materials and labor go up, the advantage will rest with investors who have existing relationships with local vendors and contractors. Local networks and "boots on the ground" have always been important for successful distance investing. And that is about to become doubly true.

Visit Reuters to read more on the effects the Hurricane recovery will have on building suppliers.