New House Construction Drops in August

For Those Who Are Building, Some Tips to Make Sure the Workmanship Is Top Notch

by Jennifer Case on September 21, 2011

According to the Commerce Department, construction of new houses in August dropped to a three-month low. While some of that can be blamed on Hurricane Irene’s effect on new structures in the northeast, the numbers still point to the possibility of a new recession. For those able to begin construction on a new home, the current economic malaise makes from some new problems to worry about.

Statistics from the National Association of Home Builders show that, on average, each home built in America will create about three new jobs for one year and will generate about $90,000 in tax revenue. Economists say that a housing market in good health will build about 1.2 million homes a month. In August, only 571,000 homes were begun. That could be a loss of more than $56 billion in taxes.

The troubled economy has also caused uncommon problems in the construction of new homes. Day laborers can frequently be seen loitering outside of places like Home Depot and Lowe’s. With the high unemployment, they are forced to become bolder and bolder about their ability to perform certain jobs. Many contractors will accept their word that they are qualified electricians, plumbers, and other specialized trades.’

Unfortunately, the shoddy construction produced by unqualified workers may not become apparent until it is too late. With so few homes being built, contractors must cut corners where they can, and the temptation do hire cheap labor can mean the difference in underbidding other companies. However, according to Jay Markanich, a home inspector, that is no reason to accept a bad product.

Markanich recommends that you have your new home inspected once before any drywall is put up, to inspect wiring and other internal components which will be hidden later, then again when construction is complete. If problems are found, some builders may only agree mistakes which violate building codes.

“Shoddy work is shoddy work and should be repaired whether or not it’s a violation,” says Markanich, “Besides, the code is a minimum standard, so that’s not very impressive.”

If you can’t afford two inspector visits, you should stick with just one before the drywall goes up. When the house is finished, you and the builder should go over it together. When checking the house yourself, be sure to open and close all doors and windows, it can be easy to overlook faulty hinges or locks and other moveable pieces which may not be installed properly.

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