Homebuilding permits up, worker availability down


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  • | 12:00 p.m. October 18, 2016
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A crew works on a Dream Finders Homes site in Durbin Crossing in Northwest St. Johns County. Builders are struggling to keep pace with the need for new homes due to a manpower shortage.
A crew works on a Dream Finders Homes site in Durbin Crossing in Northwest St. Johns County. Builders are struggling to keep pace with the need for new homes due to a manpower shortage.
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When driving around Northeast Florida, it’s hard to ignore the changing landscape.

New houses are springing up daily and builders are steadily buying more land for new subdivisions.

The desire for new homes in Clay, Duval, Nassau and St. Johns counties is climbing so rapidly that contractors can’t get them built fast enough.

“Mortgage rates are still low and the job market is good, which brings out buyers,” said Corey Deal, executive officer of the Northeast Florida Builders Association.

According to NEFBA, 5,690 new home permits were issued from January through August in the four-county area. That’s up nearly 24 percent from last year’s end-of-August total of 4,330.

“The municipalities are doing a great job keeping up with the market,” said Brad Muston, head of construction for the Jacksonville division of Dream Finders Homes. “They are pumping out the permits as fast as they can.”

But with a boom, also comes problems.

Some homebuilders say they continue to have trouble finding construction workers for their job sites — and the demand is expected to grow.

“It’s a huge challenge, no question about it,” said Muston. “And it’s not only a quantity issue, it’s a quality issue as well. The skilled trades labor market is really tight.”

According to data from the Florida Department of Economic Opportunity, the state’s construction industry this year added 22,000 jobs, of which 4,300 were in Northeast Florida.

Even with the increase in workers, many companies are still seeing labor shortages. Some are resorting to creative methods to tackle the workforce problem in attempt to stay on schedule.

“We’ve hired workers according to proximity to the jobsite,” said Doug Moran, Jacksonville division president of Dream Finders Homes. “We’re making it more efficient for everyone so we can stay on schedule.”

The company is second to D.R. Horton for number of permits issued in the area.

With communities from St. Augustine to Fernandina Beach, Dream Finders is familiar with the impact a labor shortage can cause.

“Until the demand comes down or we get more labor, we will see prices increase and longer construction schedules,” Moran said.

Some in the industry feel training a new generation of trade workers will help solve the skilled labor shortage.

Apprenticeship programs in the area are recruiting and preparing new workers for a career in construction.

“Our apprenticeship program at NEFBA is a four-year program,” said Deal. “It teaches skills for a lifelong career and allows for the opportunity to be independent.”

 

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