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Navigating Labor and Supply Chain Issues in Home Building


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Challenges Faced by an Aging Construction Worker Due to Delayed Retirement Age and Physical Strain. Concept Retirement Age, Physical Strain, Aging Workers, Construction Challenges, Delayed Retirement generated using AI by Anastasiia on Adobe Stock
Aging Construction Worker Image Generated by AI for Adobe Stock

The home building industry is facing some rough seas. Labor shortages and supply chain disruptions are rocking the boat, messing with project timelines and profits. The industry lost a ton of construction jobs during the pandemic – over a million, in fact. Things have picked up, but the homebuilding industry was still short almost half a million workers at the end of 2023. And it’s not just finding people; getting materials is a headache too. Construction costs have jumped by almost 40% since 2020, and supplies take forever to show up on site. It used to take under 7 months to build a typical house, but now it’s over 8 – all thanks to these problems.  

This isn’t just a temporary storm; it’s a whole new weather pattern for home builders. Builders might want to adjust their sails if they want to stay afloat. In this post, we’ll dive into what’s causing these issues, how they’re affecting the industry, and what can be done about it. Plus, we’ll look at how Outhouse can help builders work smarter, not harder.

Where Have All the Workers Gone?

The labor shortage is a big problem with deep roots. One reason is the “silver tsunami” – experienced workers are retiring, and not enough young folks are stepping up to take their place. For every five retirees, the home building industry only gets about two new workers. That gap is getting wider and wider, leaving home building high and dry, especially for skilled trades. Across the U.S., the construction industry has about 8.3 million construction workers, with 3.4 million in home building, but it’s not enough. A whopping 65% of builders can’t find enough finish carpenters. This drives up labor costs and throws off schedules. To put it in perspective, the industry needed over half a million extra workers in 2024 just to keep up. This is even worse than the shortage during the housing boom back in the mid-2000s, even though fewer homes are being built now. Something has to give!  

Image courtesy of CanvaPro

So, why aren’t young people interested in construction?

  • College Craze: Many young people think a college degree is the only ticket to success, so they’re not going to trade schools.
  • Tough Job: Construction can be tough on the body and sometimes dangerous, which doesn’t appeal to everyone.
  • Competition: Other industries like manufacturing are also scrambling for workers, so everyone isl fighting over the same talent pool.

Supply Chain Snags

The pandemic really showed the world how fragile our supply chains are. Closed borders, factories shutting down, and transportation issues created a real mess, making it hard to get materials and driving up prices. It didn’t help that everyone started panic-buying, which made things even worse .  

Lumber prices went through the roof. Appliances, windows, and doors were like gold dust. Projects got delayed, and costs went up all around.  

Even though the pandemic is mostly behind us, the supply chain is still tangled. The war in Ukraine, high energy costs, and ongoing shipping problems are keeping things unpredictable. Some companies are turning to tech to help, using things like “control towers” to track materials and adjust to changes quickly.  

close up architect showing new house project with tablet, empty land plot background generated by AI for Adobe Stock
Tablet computer showing new build generated by AI for Adobe Stock

Strategies for Success

Builders should consider being proactive to navigate these challenges. Here are some strategies that can help:

Finding and Keeping Skilled Workers

  • Invest in the Future: Builders can create apprenticeship programs and on-the-job training to bring in new talent and keep our current workers sharp. Some industry groups like the Home Builders Institute (HBI) and Lowe’s Foundation are putting money into training programs to get more people into the trades. Programs like The House That She Built work to educate young people about the opportunities available in the building industry. 
  • Cast a Wider Net: Look beyond the usual places to find workers. Reach out to women, veterans, and people who were formerly incarcerated. Partnering with community groups and schools can help us connect with potential employees.  
  • Show Appreciation: To keep good workers, consider offering competitive pay, offer great benefits, and give them chances to grow. Think health insurance, retirement plans, paid time off, and opportunities for promotions.  
  • Embrace Technology: Technology can help do more with fewer people. This includes things like automation, prefabrication, and digital tools for managing projects . By investing in technology, home builders can make jobs more efficient and appealing.  

Getting Needed Materials

  • Team Up with Suppliers: Strong relationships with suppliers are key to getting needed materials on time. Open communication and working together can help everyone in the supply chain anticipate problems and find solutions.  
  • Don’t Put All Your Eggs in One Basket: Have backup plans. Find new suppliers and consider using different materials if current suppliers run into shortages or hike up prices.  
  • Plan Ahead: Ordering materials in advance and keeping enough on hand can help avoid delays and price swings.  

Working Smarter, Not Harder

  • Simplify Choices: One way to ease the strain on the supply chain is to offer fewer product choices, sticking with materials that are readily available .  
  • Package Deals: Offering pre-selected material packages can make things easier for everyone and ensure that everything works together.  
  • Order Early: For important things like windows ordering them six months ahead of time and storing them can prevent delays. This takes some planning and space, but it can be worth it.  
  • Speak Up: Advocate for policies that can help fix supply chain problems. This includes supporting efforts to increase production of things like electrical transformers.  

How Outhouse Can Help

Outhouse.net has some great tools that can help home builders work more efficiently and deal with labor and supply chain issues. By outsourcing your drafting to Outhouse, you can save money and get top-notch expertise .  

Here’s a quick look at what we offer:

Here’s how these tools can help:

  • Less Rework: Accurate plans mean fewer errors and less time and money wasted on fixing mistakes.
  • Clearer Communication: IFPs and other visual tools help everyone understand the plan, preventing confusion and delays.
  • Smoother Operations: Outhouse products help streamline the design and construction process, making things more efficient.

Riding the Wave

The labor shortage and supply chain disruptions are tough challenges, but home builders can overcome them. By investing in the workforce, building strong relationships with suppliers, using technology wisely, and taking advantage of tools like those offered by Outhouse, home builders can weather this storm and continue building quality homes efficiently and profitably.

Nurturing Emotional Motivators in Homebuyer Engagement


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Man looking at interactive floor plan with multiple homebuilder browsers open

Human emotions are a powerful force, especially when it comes to purchasing a home. While homebuyers may believe their decisions are primarily driven by logic, the truth is, how they feel plays a significant—often subconscious—role. And in today’s digital-first world, that emotional connection begins long before the first in-person meeting; it starts online, the moment they visit your website.

Production home builders across the country offer similar baseline information on their websites—square footage, pricing, number of bedrooms, garage options. These metrics are essential, but they don’t differentiate you from competitors. To stand out in a crowded marketplace, your website must engage potential buyers on an emotional level. The builders who succeed will be those that move beyond data points and create an experience that resonates deeply with the emotions that drive purchasing decisions.

Breaking Through the Research-Only Mindset

Every homebuyer begins their journey in research mode, focused on gathering data to compare builders. They have a checklist—square footage, budget, number of rooms—and they visit one builder website after another, reviewing their options. The challenge for your marketing team is to disrupt that research-driven mindset and inspire potential buyers to linger, explore, and imagine themselves living in one of your homes.

This shift happens when your website transcends utility and starts tapping into the emotional motivators that drive decisions. Features like interactive floor plans (IFPs), 3D visualizations, and space planning tools can evoke creativity and excitement, encouraging users to move beyond simple data collection. The longer they stay engaged, the more likely they are to envision their future in one of your homes—and ultimately, to contact you.

The Power of Emotional Motivators

Emotional motivators are the psychological triggers that influence buyer behavior. According to Harvard Business Review, over 300 emotional motivators impact purchasing decisions, from choosing a brand of gum to selecting a home. For the homebuilding industry, the following five motivators are critical in shifting homebuyers from a research mindset to one of creativity and emotional investment:

  • Freedom: Buyers want to feel empowered. Websites that restrict access to information—whether through mandatory registration or withholding key details—stifle this sense of freedom. Open access to pricing, floor plan options, and even premium lot fees makes buyers feel in control. When buyers can freely explore, they are more likely to create emotional connections.

Freedom encourages creativity… Creativity encourages fantasy…
Fantasy encourages emotions… and emotions encourage purchases”.

  • Excitement: Excitement heightens emotions and accelerates decision-making. Tools like virtual walkthroughs and interactive site plans allow buyers to visualize their future, creating an emotional response that drives action. By fostering excitement early in the process—before they even speak with a salesperson—you increase the likelihood of a conversion.
  • Ownership: Empowering buyers to customize their future home—choosing finishes, adjusting floor plans, selecting options—instills a sense of ownership. This emotional attachment strengthens their commitment and increases their willingness to move forward with a purchase.
  • Security: Homebuyers are naturally anxious. They want to know the details: costs, layouts, school districts, and lot availability. The fewer questions a buyer has to ask, the more secure they feel. Your website should anticipate and answer these questions, reducing uncertainty and building trust.
  • Confidence: Confidence is the culmination of effectively nurturing all the previous motivators. When a homebuyer feels secure, excited, and in control, their confidence in both the decision and the builder solidifies. A website that fosters this confidence will convert visitors into buyers before they’ve even stepped foot in a model home.

Create an experience that inspires people to believe, “I CAN DO IT”
…and they will.

Interactive Floor Plans: The Cornerstone of Emotional Engagement

Of all the tools available to home builders, interactive floor plans (IFPs) are the most powerful for engaging emotional motivators across all demographics. While other features like virtual tours and 3D renderings are valuable, IFPs provide a unique opportunity for buyers to personalize their future home, creating a sense of freedom, ownership, and security—all in one experience.

However, not all IFPs are created equal. To truly leverage their potential, your IFPs must include:

  1. Accessibility on All Devices: Buyers should be able to explore floor plans on their phone, tablet, or desktop, seamlessly. If the experience is clunky or limited to certain devices, you risk losing valuable engagement.
  2. Dynamic Pricing: The best IFPs show live pricing that adjusts based on selected options and upgrades. This transparency enhances feelings of freedom and security, as buyers can immediately understand how their choices impact the final price.
  3. Advanced Space Planning: An IFP should allow buyers to visualize their own furniture and fixtures in the space, giving them the freedom to design their home as they see fit. The more detailed and customizable this feature is, the stronger the sense of ownership and emotional connection. The best space planners will even have a library of electrical components (lights, outlets, security cameras, etc.).
  4. Lead Generation Integration: Buyers who invest time customizing their dream home are prequalified leads. The IFP should seamlessly collect contact information and feed it into your CRM, ensuring your sales team can follow up with engaged, motivated buyers. If you do not utilize CRM, make sure the IFP platform has an integrated lead management system.

The right Interactive Floor Plans will nurture all Emotional Motivators.

Conclusion

In today’s competitive homebuilding market, it’s not enough to simply meet the needs of your buyers—you have to connect with them on an emotional level. By harnessing the power of emotional motivators and incorporating the right digital tools into your website, you’ll not only engage potential buyers, but inspire them to envision a future in one of your homes. After all, when you create an online experience that fosters freedom, excitement, ownership, security, and confidence, the decision to choose you becomes

Stuart Platt

Stuart Platt is Managing Partner at Outhouse LLC, an industry leader dedicated to providing an extensive and integrated menu of products and services to production home builders across the world. These services include but are not limited to Architectural Drafting, 3D Renderings, Virtual Tours, Animations, Interactive Floor Plans, Interactive Site Plans, Interactive Sales Office Displays, Interior and Exterior Visualizers, Graphic Design, Commercial Printing, and more. Outhouse is the ONLY company in the nation providing all of these services in house.

Join Stuart Platt at the Home Builder Digital Marketing Summit this October 23-24th! He’ll be diving deep into the strategies discussed in this blog, sharing insights on how to create an online experience that resonates with potential buyers on an emotional level. Don’t miss this opportunity to connect with Stuart and other industry leaders to elevate your digital marketing game.

Join us back here at OutThink in November for Part 3 of Bill Gelbaugh’s Unlocking Outhouse’s Potential with OKRs .

The Power of Consistency: What Won’t Change in the Next Decade?


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In an era marked by rapid technological advancements and constant change, it’s easy to get caught up in predicting the future. Jeff Bezos once said, “I very frequently get the question: ‘What’s going to change in the next 10 years?’… I almost never get the question: ‘What’s not going to change in the next 10 years?’ And I submit to you that that second question is the more important of the two.” This insight highlights the critical importance of focusing on the constants that underpin lasting success.

One need look no further than to Katerra, the now defunct technology-driven off-site construction company founded in 2015.  Katerra seemingly held so much promise for streamlining the construction process.  Its demise ultimately came down to not-so-great management, but another contributor was lack of enthusiasm by the home building industry to make a major shift in construction methods.  Who knows, with AI coming into play we may see change in the next 10 years, but that won’t happen unless home builders and homebuyers begin to look at housing in a new light.  A house is one of the few things that is still entirely handmade here in America, and therefore a career choice and point of pride for many.

Image by Katerra Group courtesy of LinkedIn

The Foundation of Enduring Success

Success isn’t just about anticipating the next big trend or technological breakthrough; it’s equally about understanding and leveraging the fundamental principles that remain stable over time. These enduring elements form the bedrock of resilient and adaptable strategies.

Institutional Knowledge: The Unchanging Asset

One such constant is the value of institutional knowledge. This encompasses the collective expertise, experiences, and insights accumulated within an organization over time. Institutional knowledge is a critical asset that, when effectively harnessed, can guide decision-making, foster innovation, and provide a competitive edge.

Like any other industry, decision makers in home building often change roles, move to another company, or retire at some point.  New people coming onboard often have “new” ideas.  Sometimes the ideas are truly innovative, but often they have already been explored.  Whether it be in new home marketing, construction, or sales, this is where institutional knowledge is beneficial.  Long term employees and adequate documentation prevent companies from spinning their wheels, keeping them on the road to progress.

Unlike fleeting trends, institutional knowledge represents the enduring wisdom that an organization has built. It includes documented processes, historical data, and the nuanced understanding of market dynamics that only comes with experience. Preserving and utilizing this knowledge ensures continuity and stability, even as external conditions change.

Resilience: The Human Element

Another unchanging element is the human capacity for resilience. As Bezos emphasized, the ability to endure and adapt is crucial. This resilience is not just about weathering storms but thriving amid them. It involves cultivating a mindset that embraces challenges, learns from failures, and remains flexible in the face of uncertainty.

Will anyone ever forget 2020?  Builders moved their offices home, stopped construction for a short while, retooled their product, then charged ahead constructing new homes as the housing market boomed!  The ability of home builders to quickly pivot in 2020, and subsequent years as housing needs rapidly change, is a shining example of resilience.    

Building a resilient organization means fostering a culture where employees are encouraged to innovate, take risks, and learn continuously. This adaptability allows an organization to pivot and respond effectively to new opportunities and threats, ensuring long-term success.

The Intersection of Technology and Human Insight

While technology continues to evolve, the intersection of advanced tools with human insight remains a constant driver of innovation. Technologies like artificial intelligence and machine learning can process vast amounts of data and generate actionable insights. However, the interpretation and application of these insights still rely heavily on human expertise and intuition.

Check out this article from Denim Marketing about “Buy Now” buttons in home building!

With the rapid advance of technologies, builders have been exploring the potential of selling homes online with the click of a button.  Unlike most other products, there are many hurdles to clear when it comes to buying/selling a home.  Securing funding, credit checks, title searches, home inspections, appraisals, additional credit checks, construction and loan delays, pages of documents to sign, and last-minute snafus all come into play making human expertise essential – at least for the foreseeable future.   

Organizations that successfully integrate technological advancements with institutional knowledge and human resilience create a powerful synergy. This combination enables them to navigate complexities, anticipate changes, and maintain a strategic advantage.

Practical Strategies for Leveraging Constants

1. Document and Share Knowledge:

   – Create robust systems for documenting processes, best practices, and lessons learned.

   – Encourage knowledge sharing across departments to foster a collaborative environment.

2. Invest in Employee Development:

   – Provide continuous learning opportunities to help employees adapt to new technologies and methodologies.

   – Cultivate a growth mindset that values resilience and innovation.

3. Balance Technology with Human Insight:

   – Leverage AI and data analytics to enhance decision-making processes.

   – Ensure that human expertise guides the interpretation and application of technological insights.

4. Foster a Culture of Adaptability:

   – Encourage experimentation and risk-taking within a supportive framework.

   – Recognize and reward resilience and innovative thinking.

The Future of Stability

As we look to the next decade, the challenge lies not just in predicting change but in identifying and leveraging the elements that will remain constant. By focusing on institutional knowledge, human resilience, and the balance between technology and human insight, organizations can build a foundation for enduring success.

While the specifics of the future may be uncertain, the principles that drive success remain steadfast. By understanding and harnessing these constants, organizations can navigate the complexities of change and emerge stronger, more resilient, and better prepared for whatever the future holds.

Written by Jim Sorgatz and Tabitha Warren

Growing New Home Sales By Casting the Widest Net Possible


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Shortly after moving to Blaine Washington, a small city sitting right on the United States and Canadian border, my spouse suggested we head to the Night Market located in Richmond, a suburb of Vancouver. I happily went along knowing nothing about this event other than it ran from 7:00 PM to Midnight, and and there would be food vendors. I was hoping the food might be better than the the typical state fair, and I wondered if the market would look a bit like a renaissance fair with turkey legs and all. When we arrived I saw this!

Night market packed with people between two rows of food booths.
The Richmond Night Market

There are more than 600 food booths here, and 90%+ of them are Asian. A quick search on Google and I learned Richmond is home to 230,000 people, three quarters of whom are Asian Canadian. The food was amazing, and I’m ready to fight the crowds again this summer. Having never been to Asia, I finally had a taste of the infamous night markets that friends tell me offer some of the tastiest delights.

In the stretch of the Pacific Northwest between Vancouver and Seattle, there are significant populations of immigrants from around the globe. China, Japan, Korea, India, Mexico, Europe, Ukraine, Russia, and many more. In my neighborhood in Blaine which sits right on the border, we have residents from both Canada and the U.S. as many families lives take place in both. This is often due to marriage, jobs, or immigration status. Peace Arch state park which is an open space between the two countries was one of the only places along the border where families could meet during the pandemic. I love taking the pups there, and jokingly warn them not to say “Eh” when we are on the Canadian side.

What does all this have to do with home building? North America is a melting pot of immigrants and cultures. Unless you are Native American, most of our families traveled from other countries to get here. And as more immigrants arrive, put down roots, and start their own families, home builders may need to look a little differently at the design, sales, and marketing of new homes. Just as men and women, families, singles, and various generations seek out different amenities in new homes and neighborhoods, people from various cultures often have unique wants and needs as well. North America also has home builders founded by immigrants including Outhouse clients Couto Homes in Texas where the Couto family hails from Portugal, Trico Homes in Alberta founded by Wayne Chu who came to Canada from Hong Kong, and K. Hovnanian Homes whose founder is from Iraq. There are also builders owned by foreign entities like Woodside Homes (Sekisui House), and Stanley Martin Homes (Daiwa House USA).

What it all boils down to is, like the diversity within our industry, the pool of homebuyers is vast. Casting the widest net possible to reach buyers is essential for sales. And that means thinking outside the proverbial box, and diversifying our sales and marketing strategies.

To continue this conversation, On Tuesday, May 21, 2024 at 11:00 AM PST, Outhouse invites you to join us for a webinar featuring Magda Esola from Brookline Homes, Ingrid Prince from Shared Drive, and Safiyyah Siddiqui from DHS Realty. Coming from varied backgrounds they will share their thoughts and experiences on selling homes with diverse buying groups. If you miss the webinar, you will find the program posted on our YouTube Channel following. REGISTER TODAY!

Why Interactive Floor Plans are a Must


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From “It’s Neat” to “It’s Needed,” Why IFPs are a Must

Remember in the spring of 2020, when literally no one was out looking at new homes, and home builders finally began going all-in on digital marketing? The big question once the world opened back up was whether or not websites would retain the same level of prominence. That question has been answered, and it is an emphatic “Yes!” Even homebuyers who visit model homes typically conduct a majority of their research online before they ever drive to one of your communities.

What was once a rare luxury on a builders’ website, Interactive Floor Plans (IFP’s) have become an industry expectation. Builders who thought IFP’s were more novelty than a functional sales tool can no longer argue the overwhelming evidence that IFP’s engage buyers, resulting in: 

  • Increased time on their websites. 
  • Increased qualified homebuyer leads. 
  • Increased number of options sold. 
  • Creating positive emotional connections to your plans.  
  • Converting leads to active prospects in a faster timeline.   
Analytics help builders see who their potential buyers are, where they are coming from, the most popular options, and a whole lot more.

Builders also find IFP’s equally as valuable to their sales team as they are to the homebuyer. Why? One reason is that comprehensive IFP’s can answer 80% of the questions your sales staff needs to field. The buyer experience is tremendously better when the simple questions are already answered, allowing the sales team to focus on selling instead of trying to help figure out how furniture will work, how options change square footage and price, “…and why do I lose the casita option when I choose the expanded garage?” 

Picking the right IFP vendor the first time is of the greatest importance.

Not all IFP’s are created equal 

When choosing a vendor to build and host what is arguably your most important online sales tool, in addition to the basics, make sure the platform you select has ALL the following advanced features: 

  • Branding – First and foremost, ensure your IFP’s are skinned and colored to match your website, logo, and corporate colors.
  • Lead Generation – The ability to save a custom plan that not only tracks these leads, but also pushes them to your CRM. 
  • Space-Planning – A detailed furniture library with scalable items for every room, including the garage and outdoor living areas. 
  • Live Updates – Dynamic pricing and square footage so as buyers add options the price and square footage automatically reflect that. 
  • Hot Spots – Clickable icons within your plan allowing buyers to open renderings, photos, videos, virtual reality and any other eye candy to keep them engaged. 
  • Device Agnostic – Regardless of the brand of computer, laptop, tablet or phone, your IFP’s work on ALL of them. 
Today’s homebuyers expect advanced features when designing their homes and planning furniture layouts with an Interactive Floor Plan.

Picking the right IFP vendor from the start is of the greatest importance. Select a company that knows what they are doing because this is not a process you want to go through a second or third time. If you find yourself dissatisfied with your IFP’s (or vendor) after creating them, they can’t simply be transferred to another vendor. You must pay to have them rebuilt from scratch again.

20-years ago Outhouse was one of the first to offer IFP’s to home builders. Our platform continues to deliver the most mature, dependable, feature-rich, engaging user experience in the industry. Our IFPs are designed to incorporate your renderings, virtual tours, visualizers and more, making it easy for homebuyers to engage with all of your digital tools. Click here for an example. In 2023, we also gave our administrative backend a massive upgrade, so your interactive floor plans, interactive site plans, and interactive kiosks are now housed in the sleek, intuitive, new Outhouse Interactive Control Center. Contact us today to learn more

About the Author: Stuart Platt is Managing Partner at Outhouse LLC, an industry leader dedicated to providing an extensive and integrated menu of products and services to production home builders across the world. These services include but are not limited to Architectural Drafting, 3D Renderings, Virtual Tours, Animations, Interactive Floor Plans, Interactive Site Plans, Interactive Sales Office Displays, Interior and Exterior Visualizers, Graphic Design, Commercial Printing, and more. Outhouse is the ONLY company in the nation providing all of these services in house.

Join Stuart Platt at the Home Builder Digital Marketing Summit this October 23-24th! He’ll be diving deep into the strategies discussed in this blog, sharing insights on how to create an online experience that resonates with potential buyers on an emotional level. Don’t miss this opportunity to connect with Stuart and other industry leaders to elevate your digital marketing game.