Every year presents challenges in terms of construction costs, but 2022 and 2023 were pretty special on that front. We are still feeling the aftereffects of the pandemic and the problems it created with our supply chain. We have seen some costs go down, but overall, construction costs are still relatively high compared to pre-pandemic building. Even so, that does not necessarily mean you will have to take it on the chin if you want a custom home built now.
If you were to look at construction costs at the beginning of the year to the end of the second quarter, you would see a slight decline. Relatively speaking, these costs are still high, but they are definitely trending in the right direction. I have also read several forecasts that show a continued decline, which is great news for people looking for homes right now.
With the situation being what it is around the globe right now, this market could change at any time, so this may be the time to take advantage.
One area of concern was construction of office spaces and senior living facilities, as there has been a dramatic downturn in demand for such projects. This is more than likely due to more people working from home after the pandemic as well as the elderly community being hit the hardest from COVID.
Material and Labor Concerns
Recent surveys showed a 15 percent reduction in concern by builders over materials cost. It is not an overwhelming number, especially when you consider that number was at 86 percent in 2022. However, the trend is headed in the right direction. A much bigger problem is labor, which could impact the final cost of the build if the contractor has to pay higher rates. A total of 63 percent of builders had concerns about being able to find the labor for their upcoming projects.
Even with such a volatile market, there are ways to keep your costs lower during a custom home build. As we noted before, sit down with your builder to find out what supplies they have in stock rather than placing a special order, as this will cut costs dramatically.
There are a lot of moving parts involved in building a custom home, which is why we recommend hiring a residential construction project manager or consultant if you do not have the time or experience to run the project on your own. Better Build Now offers a wide range of services for homeowners, and we would love to discuss how we can help ensure you get the dream home you always wanted.
Give us a call at 888-402-4180 for more information.