Matthew 6:33 – “But seek ye first the kingdom of Yahweh, and his righteousness; and all these things shall be added unto you“.
Cost To Build New Home: Add +$36,000
Cost To Build New Home: Add +$36,000. The housing market gets leaner. Potential buyers are turning in record numbers to new construction.
Several factors are making new homes pricier than ever before. Inflation? No ones calling it for what it is.
There is a major shift in the market’s composition due to the record shortage of existing homes available.
About 1 in 4 homes for sale are newly built, the highest share ever.
Prices for new and existing homes are at record highs.
But it is not just competition fueling prices for new homes. The cost of what goes into the home is adding to it as material and land prices surge.
Why is it so expensive
Lumber prices seem to set a new record almost daily. Prices are up 67% this year and up 340% from a year ago.
Lumber doesn’t just go into framing a house. Those added costs hit cabinets, doors, windows and flooring.
Lumber tariffs had prices already rising a year ago. But then when the virus hit, production shut down.
Some builders are slowing production in the face of exorbitant costs.
Builders are clearly trying to ramp up production as fast as they can to meet soaring demand.
But it’s not just lumber. Prices of gypsum, which is drywall, are up nearly 7% from a year ago.
Other factors to consider
Steel mill product prices are at a record high, up nearly 18% in March year over year.
It’s used for beams, sheet metal products and wiring.
The price of copper also set a record high this month and is 27% year to date.
And then there is land. The price per single lot is up 11% this year compared last year.
Because demand is so high and supply is low.
The lot supply shortage is real, and it is causing prices to rise and builders to move further into the suburbs.
Add higher commodity prices to that equation and the new home market will continue to struggle.
Alternative solution to new home costs
Consider building your own home and cut the middle man out. We did it.
Owner builder homes are becoming more popular and in demand due to economic uncertainty.
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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