Congratulations on starting to plan your new home build! Some may have tried to dissuade you, considering the fluctuating housing market, but let me assure you that plenty of beautiful, budget-conscious dream homes are still being built, every single day.
As I’m helping clients with their pre-construction budgeting, we’re talking through their non-negotiables as well as the areas they’re willing to budge on. This give-and-take process allows us to keep their build budget in-check – while still creating the home of their dreams.
What to Know About Pricing
Lumber prices have dropped since an all-time high in May 2021, but you’ll see that prices for materials, appliances, fixtures, and finishes continue to be volatile. Be prepared for a cost swing if a particular material changes price mid-project.
Flooring, for example, could ratchet up your final cost if it changes even slightly per square foot.
My advice? Be smart, be flexible, and be patient when it comes to securing the materials you need at a reasonable price.
What to Know About Demand and Availability
Global and national supply chain interruptions have created limited supply for building materials. Manufacturing companies are struggling to keep up with the increased building demand, and you’ll see that play out in the availability of your desired appliances and fixtures.
Companies have paused production of less popular products in favor of materials they know they can sell quickly. It’s likely that this backlog won’t recover until 2023.
My advice? There is still a decent selection out there, so I’m confident we can find you something that you’ll like. If you are really set on some less-available options, you may have to delay your build into 2022/2023 when the backlog dissipates.
What to Know About Local Labor
Employers are facing labor shortages throughout the country, especially in manufacturing and construction jobs. With an already overwhelmed workload, these labor constraints are causing delays in construction.
My advice? Give your contractor some grace if building timelines are extended. We’re all doing our best to make it through this tough labor market.
What to Know About Your Budget
It’s important to develop a budget in advance. Use realistic numbers for current market pricing – but build in an additional 10-15% for overages and contingencies.
The reality is that you will likely have some type of unexpected overage. Some of these will be due to unforeseen issues that don’t arise until building begins – such as the depth of the well that needs to be drilled, soil conditions, or rocky terrain.
Other overages are going to come in the form of material costs, especially if you have your heart set on specific selections. If you can be flexible, these overages can be mitigated, but in some cases it’s just going to be a necessary cost.
My advice? Work with a professional who can guide you through the home building process. At Trait Design, we can help you properly plan and prepare for your new build or remodel project by working through the entire design of your home before you even contract with a builder.
You do not have to tread through these waters alone! We can help bring your vision to life while balancing the wants, needs, and budget of your project.
Of course, we can’t guarantee that you won’t end up with some overages, but we can help you create a solid budgetary foundation to work from, and help prevent you from a myriad of cost-related changes that affect the overall design and vision for your home.