Building boom means drywall shortage, higher prices

The Associated Press

CHARLESTON, S.C. -- A year ago, builder Steve Blackburn could call his supplier and have drywall delivered to a work site in 48 hours. Now, with a nationwide building boom, getting drywall can take a month and cost more, too.

His customers are getting antsy. It is running up their bills and keeping them from moving into new homes. "It's a shock to the homeowner. It's just another obstacle in the building process," Blackburn said. Drywall that cost $9 a sheet a year ago now sells for about $11. While that boosts the price of a home only a few hundred dollars, any delay means customers are paying out additional interest in building loans. Some are forced to find other living arrangements while they wait. Drywall, also known as wallboard or the brand name Sheetrock, is in most cases dried gypsum plaster sandwiched between heavy paper. It long ago replaced plaster on interior walls in most construction. Drywall factories around the nation have been operating at capacity for months. Still, they can barely keep up with demand from a booming housing market and a mild winter that allowed construction to continue in many areas where it otherwise would shut down. The government said Monday that construction starts of new single- family homes last month rose to their highest level in two decades -- a seasonally adjusted annual rate of 1.41 million units. The drywall shortage "doesn't stop the starts, but it slows down the completions," said Michael Carliner, an economist with the National Homebuilders Association. "The housing start number is an indication it may get worse before it gets better." At the nation's largest producer, Chicago-based USG Corp., with about one-third of the market, plants have operated 23 hours a day for the past 15 months, spokeswoman Judy Wohlt said. Two more plants are to be operating by year's end, a third next year, and two more are being planned, she said. "We see the demand for drywall directly related to the strong economy and consumer confidence," Wohlt said. The demand goes beyond housing starts. Drywall for remodeling existing homes represents about 40 percent of USG's business, she said. Drywall doesn't travel well -- it is brittle and can't get wet -- so little is imported, except from Canada, Carliner said. Some stores in the nationwide Home Depot chain have put a limit on how many sheets customers can buy. "It varies geographically by what's going on in that market as far as building starts and construction," Home Depot spokesman Jerry Shields said. "Obviously, we can't get as much as we need. The point is demand is greater than supply for everyone." Pelican Building Supply in North Charleston has sold 12,000 sheets of drywall not even delivered yet. "This is the first time this has happened," said Jason Villaume, a shipping supervisor. Those who order today will get their drywall in about a month, he said. Blackburn, the home builder, said the shortage hurts his customer relations. "When I have to wait three to four weeks for Sheetrock, it doesn't make me look good," he said. "They have to pay more interest on their money and the house is just sitting there."

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