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Understanding Home Building Costs in 2021

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With the numerous events that have occurred within the last two years, many changes in the housing market have come about, whether you are building or purchasing a pre-built home. The National Association of Home Builders reports that material shortages are now more widespread than at any time since it began tracking the issue in the 90s. 

Understanding Home Building Costs in 2021

What is Causing Construction to Slow Down?

  • The COVID-19 Pandemic
  • Halt in Manufacturing
  • Factories Shut Down
  • Demand Increase
  • Fluctuating Material Pricing

The Shift Caused By COVID-19

When the COVID-19 Pandemic hit, our nation had one of the largest shifts ever experienced. Manufacturing plants had to close down in the spring of 2020 due to COVID-19, affecting the supply of building materials. These factors, along with the national housing demand staying strong, have caused unprecedented shortages in the housing market.

Supply Cannot Handle The Demand

Product Back-Ordering

Products and appliances have been back-ordered for months and even years depending on the products such as: timber, copper, cement, select electrical components, steel, and certain paints. Materials cannot be made fast enough to keep up with the housing demand. While the lumber industry has taken one of the hardest hits, the demand for housing has further increased. Homebuilders are having to back-order the materials, appliances, and products for their future homes. 

Builders Rationing Materials 

Each part of the home building process has changed drastically. This shortage has caused a ripple effect throughout the whole industry. The costs are passed throughout the home building process affecting suppliers, builders, contractors, and the consumers. Suppliers are rationing materials, products, and pieces that are crucial to the building process. 

What To Expect Building A Home In 2021

You may be asking yourself what to expect when building in these unpredictable and unexpected times. Many factors play into what you should expect because not every home is built the same or composed of the same materials. Your home is specific to you, so staying flexible in your material selections will go a long way.

Location Affects Availability

Location plays a large role in the availability of materials and products. It is also likely that some materials will be unavailable while other materials are readily available. Be patient with the lack of material and the backup of supplies.

Unplanned Expenses

In general, the prices of materials may fluctuate before and during your project. Be prepared to make design/build decisions quickly so that your builder can lock in prices with their suppliers by ordering materials to avoid delays or unforeseen price increases. At Gardner Homes, our focus is to make the build process as smooth as possible; guiding you through each phase from financing and budget to design and construction.

Ask the Experts

Consider the type of home you are wanting to build. What will you want and need to build the home of your dreams? If you are not sure what your build will be like, call Gardner Homes at (208) 314-4437 for an in-depth answer that is specific to your home building factors. Let our Gardner Homes build team navigate the current home-building market for you and make building your dream home a reality.

Filed Under: Custom Homes, Home Builder

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