Considering building? Here is why now might not be the best time.
It seems more people are looking to renovate, add-on, or even buy land and build new due to the lack of housing available right now. If you can find a builder that has the capacity to add your project to their schedule, you’re likely to pay a pretty penny for it right now. If budget isn’t a concern, it could be possible, but the availability of building products has been scarce and we aren’t quite sure when it will change.
We’ve encountered builders currently scheduling a year out and struggling to complete projects on time due to delays in product delivery and availability right now. We’ve also seen change-orders upwards of 20% due to increased lumber costs.
This article from the National Association of Home Builders states that the average new single-family home price has increased by $14,116 since April. The lumber costs have increased about 70% in just four months.
It might be a good idea to wait.
While it might not be the best time to build/renovate right now, it might be a good time to work through your design so that it is ready to go. It’ll take time to design but utilize this time to do it right and not rush the design process. Once you have the design, you can watch the construction costs moving forward and be ready when the time is right for you and your budget. It’s important to understand the value vs the cost. It could be worth it, just know what you are walking into in today’s environment.