The cost and availability of labor is the top challenge homebuilders expect to face this year – an issue that has been growing in concern over the past three years, according to the latest National Association of Home Builders and Wells Fargo Housing Market Index. Read more: Builders Tweak Home Features to Lure Buyers “An expected skilled labor shortage can constrain an improving housing market,” according to the builder’s tradegroup. Seventy-six percent of builders recently surveyed say that the cost and availability of labor will be a growing problem in their businesses this year. For comparison, in 2013, 53 percent of builders cited labor as a significant problem. The following are the top 10 “significant problems” builders say they expect to face in 2016: Cost/availability of labor: 76% Cost/availability of developed lots: 59% Federal environmental regulations and policies: 57% Building material prices: 56% Impact/hook-up/inspection or other fees: 55% Concern about employment/economic situation: 55% Regulation of banking/financial institutions: 53% Gridlock/uncertainty in Washington making buyers cautious: 53% Local/state environmental regulations and policies: 49% Inaccurate appraisals: 48%

Source: National Association of Home Builders