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Due to labor and supply shortages, Zillow stopped buying homes until 2021: NPR

Construction workers are working on the roof of an apartment complex in Uniondale, NY in May 2020.

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Construction workers are working on the roof of an apartment complex in Uniondale, NY in May 2020.

Albero / Getty Images

Zillow, a real estate website, has announced that it will stop buying and remodeling homes until the end of the year as it handles unprocessed properties and addresses labor and supply shortages.

Zillow’s Chief Operating Officer, Jeremy Wacksman, said: Said in a statement.

“We were not exempt from these market and capacity issues, and now we have an operational backlog for refurbishment and closure,” he added.

Through that Zillow Offer In the program, the company buys homes directly from the seller, completes the necessary upgrades, and puts them up for sale. This eliminates the need for sellers to set up repairs and screenings themselves, the company says.

Zillow, known for its online real estate listings, Told shareholders The purchase of 3,805 homes through the program in the second quarter of this year is a significant increase over the last few years.

Zillow’s offer. Released in 2019, Sold 2,086 homes and generated a gross profit of $ 71 million over the same period.

The company announced on Monday that it would not sign a new contract to buy a home until the end of 2021. Zillow said it will sell and sell homes through the program and will continue to buy homes that have already been contracted. It has been signed, but it is not finished yet.

The construction industry was one of many industries that was hit hard by the COVID-19 pandemic, where the cost of building materials soared.On the other hand, as with housing demand price tag — The number has increased rapidly.

The astronomical price of wood Decrease Due to recent highs, other materials such as steel and plumbing are still expensive or in short supply.Is on it Serious shortage of construction workers..

Both new home construction and building permit approval fell September is compared to the previous month, according to the US Census Bureau.

so interview When market Last month, Anirban Basu, an economist at Associated Builders and Contractors, said the coronavirus was still causing problems in the housing industry. “The global spread of delta variants has increased supply chain problems, which means higher prices for inputs and higher costs for providing construction services,” Bass said.

Due to labor and supply shortages, Zillow stopped buying homes until 2021: NPR

Source link Due to labor and supply shortages, Zillow stopped buying homes until 2021: NPR

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