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Crazy Inflated Home Construction Costs?

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    Crazy Inflated Home Construction Costs?

    Does anyone have an educated guess as to when these super inflated material costs will normalize? End of 2021? 2022? I don't ever expect them to get back to pre COVID numbers but this is ridiculous.

    We got the bid for our planned build and material costs are 70-120k more than anticipated on a 2200 sqft house. We will probably hit the pause button on construction and hang tight for a year or two to let costs go down if we have to. Any opinions on possibly giving up these low interest rates on the hope that material goes down in the next couple years? If it was a 20-30k difference I would just build but 100k difference is pretty substantial.

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    #2
    Hopefully by the time I retire in 10 years

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      #3
      It's absolutely insane, and I can't explain it.

      It's a miserable time to be in this business.
      Last edited by Dale Moser; 04-07-2021, 03:58 PM.

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        #4
        not sure when it will happen but lots of people are still buying house and building even with the stupid high prices right now.

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          #5
          Reports I have seen say lumber crunch goes into Spring 2022. But eases up then.

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            #6
            Originally posted by Dale Moser View Post
            It's absolutely insane, and I can't explain it.

            It's a miserable time to be in this business.
            That's the truth. Unfortunately the low interest rates are allowing entry level homes to be built and still have a lower payment than an apartment. I feel this is a huge part of it. I just got another price increase from most of my vendors.

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              #7
              Went to buy material for a "small" 10x14 2x6 platform for out in front of our 5th wheel.

              Holy Smokes! I went ahead and did it but it was more painful to buy it than build it...

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                #8
                I have no idea ... It is absolutely insane though.

                Our median construction costs across the state are unexplainably high. Even the home sales in our NTexas area has skyrocketed.

                We have so many homes that need so much work, it has completely ruined the entire market in terms of material cost.

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                  #9
                  I believe it will bust soon

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                    #10
                    Lots of builders won’t sell dirt anymore. Can’t sign a contract on a home until it’s at sheetrock stage or that range due to prices constantly changing and the market being hot.

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                      #11
                      I suspect it goes down eventually but not by much.

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                        #12
                        I keep going back and forth on this subject. On the one hand we all want prices to be lower but in order for that to happen the economy has to "cool off" or crash in which case employment/business will suffer.

                        The government keeps printing money and in order to service their record high debt they have to keep interest rates super low. Low rates = cheap money = increased demand. When will it end? Who knows BUT hurricane season is coming up. If you think lumber prices are high now hide and watch.

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                          #13
                          My parents sold a 40 year old 1k ft^2 house in Austin for $300 a ft and got 60 k more than asking price.

                          It’s gonna have to crash before I’m willing to move. Got two more years here then I guess I’ll find out.


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                            #14
                            When people quit paying the prices.

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                              #15
                              It’s crazy here in Colorado too. But they are still building like crazy, and most houses that are for sale are getting 60- 80 thousand more then asking price ! I heard today average house cost here right now is 600,000.00 !

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