5 Game-Changing Tips to Tackle Material Shortages in Real Estate

Post by Longhorn Funding on March 11, 2025

Material shortages have plagued the real estate industry, with lumber prices alone spiking 42% in 2021 and still fluctuating wildly into 2025 (U.S. Bureau of Labor Statistics). For rehabbers, developers, and fix-and-flippers, these delays can tank profits and timelines. But you don’t have to sit idle—here’s how to manage delays like a seasoned pro.

1. Build a Buffer Into Your Timeline and Budget
   Plan for the worst. Add 15-20% extra time and 10-15% more budget to account for delays. A 2024 National Association of Home Builders survey found 90% of builders faced supply issues—don’t get caught off guard.

2. Source Smarter, Not Harder
   Diversify suppliers now. Call local salvage yards, check online marketplaces like Craigslist, or partner with smaller distributors. One flipper I know scored discounted drywall from a canceled commercial project—be resourceful.

3. Prioritize and Phase Your Work
   Can’t get flooring yet? Start with demo, framing, or electrical. Shift tasks around so crews stay busy. Idle labor burns cash—keep the momentum.

4. Pre-Order and Stockpile Essentials
   If you’ve got storage, order critical materials (think nails, drywall, or plumbing fixtures) early. A developer friend locked in lumber prices six months ago and saved 25% when shortages hit.

5. Communicate Like a Boss
   Keep investors, contractors, and buyers in the loop. Transparency builds trust and buys you time. Delays happen—how you handle them sets you apart.

Action beats panic every time. Start implementing these steps today, and you’ll turn a supply chain mess into a competitive edge in your Real Estate business.