Houston's Rate Sheet

Sheetrock in short supply

Houston Real News reports that Houston is experiencing a massive shortage sheetrock and other building materials. Apparently many builders are loading up on building materials here and bringing them to Louisianna.

Although construction starts may be falling elsewhere around the country, in Houston and along the Gulf Coast business appears to be booming. Retailers of building materials, such as Home Depot, are experiencing shortages of sheetrock in Houston.

HoustonRealNews contacted five retailers over the city and found only who had a regular supply of sheetrock. The other four either had very little, were out of certain sizes, or were rationing their remaining inventory until another shipment came in.

One long-time Home Depot store clerk said these shortages were unusual 6 months ago. "They're buying big quantities and taking it back to Louisiana."

A Home Depot corporate spokesperson in Atlanta elaborated. Stores have discretion to ration if they so choose. Especially if they suspect a suspicious order, such as a contractor with a flatbed truck ordering 3,000 sheets of sheetrock. The spokesperson said such a purchaser is taking the
sheetrock straight to Louisiana to "scalp" it. "They're not exactly contractors are they."

Professional contractors rely on the retail outlets for everyday needs; running out of a staple such as sheetrock might change that behavior. Hence, some stores have begun to ration sheetrock.

Making sure many contractors get some sheetrock versus a few large customers getting it all will keep more of Home Depot's "regulars" coming back.

As the construction orgy in Louisianna accelerates, I imagine we can expect more stories such as this one. Hopefully, it won't lead to a situation in which home renovation costs increase substantially.

posted by Vincent Biondillo @ 9:08 AM