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When the housing market collapsed in Florida during the real estate bust, many skilled tradesmen left the state. Many of them went to oil boom areas such as Texas, the Dakotas and even Canada.
Now that the housing market is recovering in Florida, homebuilders report it's tougher to find skilled subcontractors.
Stuart Miller, the CEO of Lennar, the Miami-based homebuilder and one of the largest in the industry, told investors recently that could have an impact on the company's operations.
“While to date, our average cycle time has remained level, there are areas with shortages of labor supply that could drive cycle time a little higher,” says Miller, according to a transcript posted on SeekingAlpha.com. “Markets like Phoenix, parts of Florida and Texas have labor shortages in some trades while other markets like the Inland Empire, Dallas and Charlotte have labor pools that have been able to absorb the increase in activity.”
That's consistent with what some homebuilders are reporting on the Gulf Coast. If labor shortages aren't addressed soon, those costs are likely to start rising and put pressure on margins.
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