[Follow-up Report] Warning from Hamamatsu Home Builder: Naphtha Crisis Directly Hits Housing Materials — "Construction could stop at any time," potential for delayed deliveries
LIFEFUND, a home builder in Hamamatsu, issued a follow-up report on the naphtha crisis, stating that the situation has worsened faster than expected. The crisis is severely impacting housing materials, leading to potential construction halts and difficulties in meeting scheduled delivery dates for new homes, with overall construction costs expected to rise by over 1 million yen.
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- 📰 Published: May 1, 2026 at 18:00
- 🔍 Collected: May 1, 2026 at 09:31
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LIFEFUND Co., Ltd. provides new homes primarily in Hamamatsu City, Shizuoka Prefecture. The impact of naphtha shortages on construction is becoming severe.
LIFEFUND Co., Ltd. (Location: Chuo-ku, Hamamatsu City, Shizuoka Prefecture, Representative: Takuma Shirato) is providing a follow-up report on the "Naphtha Crisis Directly Hits Housing Materials" warning issued on March 30, 2026, detailing the current situation approximately one month later. The situation has deteriorated faster than anticipated in the previous release. Construction sites continue to face a situation where "work could stop at any time," and the possibility of difficulties in delivering homes to customers as scheduled cannot be ruled out.
■ What is the naphtha crisis and why is it related to home building?
Image of a tanker transporting oil from overseas to Japan.
At the end of February 2026, military clashes between the US/Israel and Iran led to the de facto blockade of the Strait of Hormuz, a crucial chokepoint for Middle Eastern energy transport.
Japan relies on the Middle East for approximately 90% of its crude oil imports. This blockade affects not only gasoline and electricity prices. Many building materials for homes, such as insulation, piping, and paints, are made from "naphtha," which is obtained during the crude oil refining process. As naphtha procurement began to stagnate, it directly impacted housing materials. As Golden Week approaches, construction companies are facing a more challenging situation than during the COVID-19 pandemic or the lumber shock.
■ Impact expands beyond petroleum-derived materials to almost all categories related to housing construction.
In the previous release, concerns were raised about petroleum-derived building materials such as insulation, piping, and paints. However, as of the end of April, the impact has expanded to almost all categories related to housing construction.
For reference, the industry specialized magazine 'Housing Tribune Online' updates information on price increases and shipping restrictions daily on its website. According to this, price increases of 15-50% are widespread across almost all categories related to housing construction, including insulation, piping, paints, sealants, adhesives, waterproofing materials, flooring, wall materials, system baths, kitchens, sashes, fittings, and power distribution control equipment. Some items have even seen new order suspensions or indefinite delivery times.
Source: Housing-related Material Price Increase Information (Housing Tribune Online)
URL: https://htonline.sohjusha.co.jp/20260409-3/
The Nikkei Shimbun reported in April 2026 that the market price of domestic softwood plywood (an indicator for structural plywood) used for walls and floors of houses rose for the first time in a year. In addition to the rising price of logs, the increase in adhesive prices is pushing up costs. Since the adhesives used in structural plywood are derived from naphtha, the naphtha shortage significantly impacts the production volume of structural plywood.
Source: Nikkei Shimbun "Housing Plywood Prices Rise for First Time in a Year, Domestic Softwood Up 3%, Middle East Crisis Drives Price Hikes"
URL: https://www.nikkei.com/article/DGXZQOUB245NJ0U6A420C2000000/
Considering that even a single price increase for insulation in a typical 30-tsubo (approx. 99 sqm), two-story new home is expected to raise construction costs by several hundred thousand yen, an overall increase of over 1 million yen in construction costs is unavoidable. This is the result of accumulated price increases across multiple categories and may expand further. Furthermore, without materials that support the structure itself, such as structural plywood for floors, roofs, and shear walls, the building cannot be assembled, so we are monitoring procurement status daily.
We recognize that the situation has entered a new phase.
■ Urgency on site
Currently, daily procurement and process management are being carried out at construction sites with an unprecedented sense of tension. At our company, the Technical Department, Construction Department, and Sales Department are collaborating, and while the current outlook is to maintain the construction period through alternative procurement, there are some materials for which construction could temporarily halt if procurement stops. Especially for structural plywood and waterproofing sheets, if they cannot be procured, the framework cannot be erected, which could significantly disrupt the entire construction period. While our entire company is working on procurement and adjustments, frankly speaking, we cannot deny the possibility of cases where deliveries to customers cannot be made as scheduled if the current international situation and distribution conditions continue.
■ Examples of responses as a home builder — Systematically preparing for "alternative procurement" and "prior agreement"
① Consideration and execution of "alternative procurement" without compromising performance
Our company has already made decisions and executed changes in insulation specifications for multiple upcoming framework erection projects. This is due to the difficulty in supplying the originally planned board insulation. However, instead of simply switching, we are committed to maintaining the overall thermal insulation performance (UA value) at or above the initial design value.
LIFEFUND Co., Ltd. (Location: Chuo-ku, Hamamatsu City, Shizuoka Prefecture, Representative: Takuma Shirato) is providing a follow-up report on the "Naphtha Crisis Directly Hits Housing Materials" warning issued on March 30, 2026, detailing the current situation approximately one month later. The situation has deteriorated faster than anticipated in the previous release. Construction sites continue to face a situation where "work could stop at any time," and the possibility of difficulties in delivering homes to customers as scheduled cannot be ruled out.
■ What is the naphtha crisis and why is it related to home building?
Image of a tanker transporting oil from overseas to Japan.
At the end of February 2026, military clashes between the US/Israel and Iran led to the de facto blockade of the Strait of Hormuz, a crucial chokepoint for Middle Eastern energy transport.
Japan relies on the Middle East for approximately 90% of its crude oil imports. This blockade affects not only gasoline and electricity prices. Many building materials for homes, such as insulation, piping, and paints, are made from "naphtha," which is obtained during the crude oil refining process. As naphtha procurement began to stagnate, it directly impacted housing materials. As Golden Week approaches, construction companies are facing a more challenging situation than during the COVID-19 pandemic or the lumber shock.
■ Impact expands beyond petroleum-derived materials to almost all categories related to housing construction.
In the previous release, concerns were raised about petroleum-derived building materials such as insulation, piping, and paints. However, as of the end of April, the impact has expanded to almost all categories related to housing construction.
For reference, the industry specialized magazine 'Housing Tribune Online' updates information on price increases and shipping restrictions daily on its website. According to this, price increases of 15-50% are widespread across almost all categories related to housing construction, including insulation, piping, paints, sealants, adhesives, waterproofing materials, flooring, wall materials, system baths, kitchens, sashes, fittings, and power distribution control equipment. Some items have even seen new order suspensions or indefinite delivery times.
Source: Housing-related Material Price Increase Information (Housing Tribune Online)
URL: https://htonline.sohjusha.co.jp/20260409-3/
The Nikkei Shimbun reported in April 2026 that the market price of domestic softwood plywood (an indicator for structural plywood) used for walls and floors of houses rose for the first time in a year. In addition to the rising price of logs, the increase in adhesive prices is pushing up costs. Since the adhesives used in structural plywood are derived from naphtha, the naphtha shortage significantly impacts the production volume of structural plywood.
Source: Nikkei Shimbun "Housing Plywood Prices Rise for First Time in a Year, Domestic Softwood Up 3%, Middle East Crisis Drives Price Hikes"
URL: https://www.nikkei.com/article/DGXZQOUB245NJ0U6A420C2000000/
Considering that even a single price increase for insulation in a typical 30-tsubo (approx. 99 sqm), two-story new home is expected to raise construction costs by several hundred thousand yen, an overall increase of over 1 million yen in construction costs is unavoidable. This is the result of accumulated price increases across multiple categories and may expand further. Furthermore, without materials that support the structure itself, such as structural plywood for floors, roofs, and shear walls, the building cannot be assembled, so we are monitoring procurement status daily.
We recognize that the situation has entered a new phase.
■ Urgency on site
Currently, daily procurement and process management are being carried out at construction sites with an unprecedented sense of tension. At our company, the Technical Department, Construction Department, and Sales Department are collaborating, and while the current outlook is to maintain the construction period through alternative procurement, there are some materials for which construction could temporarily halt if procurement stops. Especially for structural plywood and waterproofing sheets, if they cannot be procured, the framework cannot be erected, which could significantly disrupt the entire construction period. While our entire company is working on procurement and adjustments, frankly speaking, we cannot deny the possibility of cases where deliveries to customers cannot be made as scheduled if the current international situation and distribution conditions continue.
■ Examples of responses as a home builder — Systematically preparing for "alternative procurement" and "prior agreement"
① Consideration and execution of "alternative procurement" without compromising performance
Our company has already made decisions and executed changes in insulation specifications for multiple upcoming framework erection projects. This is due to the difficulty in supplying the originally planned board insulation. However, instead of simply switching, we are committed to maintaining the overall thermal insulation performance (UA value) at or above the initial design value.