Increased material costs are already increasing the price of new homes and may eventually cause a decrease in residential construction. The increased material costs and potential schedule delays may also decrease the level of overall construction in other sectors as well.
The market may, however, experience some relief in the near future. The following factors may alleviate the current situation:
Rising interest rates may slow construction enough for cement and steel production to catch up, thus stabilizing prices and supplies.
Construction rates will decrease as winter approaches, allowing production rates to catch up and thus prices to stabilize.
The Chinese government has taken measures to slow its economic growth, which may in turn reduce demand and prompt a decrease in material prices throughout the world.
Potentially, new production and manufacturing facilities could increase supply.