Katrina Toll: Biggest loss of homes ever, construction supplies squeezed, rebuild will take years

Amid the chaos and heartbreak in New Orleans and other Gulf Coast areas ravaged by Hurricane Katrina, the National Association of Home Builders says the disaster is expected to have far reaching implications for those involved in home construction. A preliminary report issued by NAHB says "the number of homes destroyed by this catastrophe is almost certain to dwarf the losses from any previous U.S. natural disaster." While the trade group is anticipating heavy demand for services offered by its members, it cautions that a ripple effect will be seen in the supply and cost of building materials including concrete and wood.

"Of necessity, rebuilding will have to wait," says the initial assessment from NAHB. "The immediate need will be to clean up and repair damage to structures that are still viable. The repair process will absorb much of the construction labor near the affected area and several key materials that would otherwise have been used to build new homes. The materials that will be most affected include roofing and wood panels (plywood and OSB). Demand for other materials, such as concrete, is likely to decline initially, as planned projects are cancelled or delayed during the initial recovery period.