Cost to Build Update 2023
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- Опубликовано: 27 янв 2023
- Here's a quick update on the major new home building material costs as of January 2023. We take a look at how costs for lumber, steel, concrete, and drywall have changed over the past twelve months and discuss whether now is a good time to build. Lumber has come down a lot since last spring but it's on the way back up!
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I’m planning on building a new home in California next year.
My brother-n-law lives 10 miles from the Mexico border in Texas.
I’m looking into getting my drywall,nails,hardware etc across the border and having him haul it here.
I’ll probably save around $50-75K.😊
Thanks for updates...
glad to hear from you again.. thought you might be sick or worse.
Thanks for this important information.
Nice to have each step calculated separately. Thank you!
Agreed. This is a good explanation.
New To The Channel! I LOVE IT! Love From NY/Massachusetts! I Gained So Much Knowledge & I Will Be Signing Up For Online Course Real Soon 💯!!! I Just Wanna Say Thank You! Especially For That Link You Put In Couple Of Videos That Have House Plans That We Can Buy & Tweak Depending On The State We Live In! Thank You! Thank Youu!!
You're the best Michael.
Awesome information!
Thanks for the update
Great video 👍
People are still out to lunch and living in 'mini-mansion' fantasyland here. Custom houses that are being built here are costing $100,000 more than what they would be able to sell them for (with the land cost) yet dummies are still paying contractors way too much, keeping prices high. Especially with the massively increased interest rates.
Karl, contractors are still charging crazy amounts here in Utah too, but it is starting to reset. Framing labor was 5x what I paid in 2016 for a similar home. Where are you?
@@courtneyr8882 It was this way back when I built my first house in 2009 too, but not this much. I'm in Saskatchewan. I got a quote to close-in my next house (not a McMansion, 900sqft two storey slab on grade out on my 150 acres) and it was $120,000 w/o materials!? I balked, he shrugged...didn't care, lots of dummies out there that just sign up I guess? My first build was a 1600sqft walkout (3,200sqft in the US) with a 28x32 fully completed detached garage and it cost me $285,000 all-in. That included a 60ft large bore fiberglass well, septic tank, all earthwork, and two separate 200amp power lines to the house and garage. 1,000 sqft vaulted ceiling and large trie pane windows with rakeheads. Roof and walls were all plywood, 2" rigid exterior insulation, 2x6 walls. The walkout (bottom) was a 10ft ICF. I did the interior insulating and installed the flooring myself. Everything else I hired people. Sold the house with 10 acres for $395, 000...kept the 150 acres.
Contractors are starting to get paid what they are worth. Our prices were stagnant for a long time.
@@rjthomasindyusa It still makes no sense to pay more for a house than it's worth to sell. It surprises me how few people actually think about that before they begin.
@@karlhungus545 The tides are changing... and not for the good. Buckle up....
Please update us again on this in sometime, I would greatly appreciate it. My wife and I are wanting to have our dreamhouse built, but aren't quite readly. Thanks
In the same boat. Had our blueprints drawn up but afraid to pull the trigger if prices may decline...
nice video thanks
HIgh five for this useful explanation.
That “dream” is getting more and more out of reach😂
deflation to come!
Thank you. Can you please give the latest update?
Good information. I would just say that construction is 100% not going to pick up this year. The fed will raise the FOMC rate 3-4 more times so construction loans and purchase loans will continue to go higher. I could see a 30 year fixed with 720 credit and 20% down go above 8% by summer. And layoffs have not even started. Hoard cash.
100% Truth
Absolutely dead on. This lying disgusting govt is hiding so much from the public. There is going to be a very abrupt and rude awakening when their lies start to be exposed. The facade is already crumbling.
@@h8marxists663 amen. It's coming
@@XPUNKFoCuS because of disasters that destroy homes
Builders are still booked out 1 year+ due to supply chain & labor shortages. So that skews the supply & demand dynamics.
housing starts to tick up this spring?, as current new home builders are heavily discounting and the 30yr is headed to 7.5%. I dont think so
Did you mention asphalt shingles?
Home prices have decreased -3.5% for the last 5 months. The biggest drop in short term prices since the index was created in '96. Home prices only fell -1.5% from '06 to '08 (took a while). After '08, prices fell almost -30% before bottoming out in '12. It took over 10 years ('16) for prices to be back to '06 levels. Looking at history, home prices are expected to crash in '23. Some estimates expect a whopping -40%- 50%!
Only in the bubble economies. They're barely 10% down in middle America. And there simply is nothing for sale.
@@rangerdoc1029 Yes, builders are still in dreamland. They think they will sit this collapse out, and by the end of the year they will finally give in and prices will be collapsing. Next spring will be very ugly for the building biz. When people still aren't looking to build expect a lot of subs and primary contractors to call it quits. If the companies that bought houses for outrageous prices start selling off next year, it will be 2011 all over again.
@@spazoq I hope so, I need to rebuild my house that burned down last month & the current market is just insane. I'd have to build half the house at double the loan compared to what I built it for 8 years ago
The banks are going to freeze up and not lend as much money out going forward. Interest rates have rose a lot, and people are being priced out of building a new home.
Because of the increase in concrete. My basement for a 1500ft home cost 110,000!! Then with theses interest rates, pmi, and doing modular. With me owning the land and 20g to put down. Still haves my payments in the 2,000 a month.
That's an addition of $73 sq ft for just concrete? I'm not buying this.
That’s insane! Poured walls, lots of corners? WTH? Where is this at?
I figure that prices are going to drop not so much for lumber but sheet goods which I figure are well inflated. Rebar likely is going to drop as supply and demand from china will also drop. Their largest steel factory just went bankrupt. As to sheet rock it likely will also drop some. Two things are happening New homes are finally getting completed. To say that there is a glut of homes on the market is an understatement. Demand for gypsum products is an understatement. There in my view is no shortage to keep the prices elevated. There is almost zero demand for new mortgages Even Wells Fargo is closing their division. Places like Loan depot are having a hard time and they are a non bank lender. An industry that is losing warm bodies at an astounding rate are folks in Real Estate sales. Another sign that housing is crashing. With this crash the demand for building materials is going to crash. I would not expect to really see this happening till the 3rd quarter. As to the price of lumber It may decline but think we can expect to see more curtailment as demand also shrinks. Seems like more finished goods are hitting the lumber yards.
At least we get some idea of relative costs.
Does your firm build multi unit properties also? Im in the cleveland market and looking for that
Pulte just reported 27% gross margin attributed to lower lumber prices. That is a 37% markup if my math is right. Housing seems overpriced when builders have markups like that. Am I missing something?
Somethings up i agree
Ive been follow8ng the Colorodo Springs new home market and the SAME EXACT FLOORPLAN THAT WAS $330K IN SUMMER OF 2021 is now $440. S me community. Same floorplan. Same materials. I dont get it
Agreed. Ask the same question everywhere else and ask if it's really inflation or companies being greedy. You'll come to the same conclusion most of the time
@@SouthernSilverExchange I saw a recent video by a channel called Meet Kevin, titled 'the homebuilder fraud'. He says they're artificially keeping new home prices inflated to manipulate the market and to protect appraisals on homes that were sold during the peak. They make up for the inflated prices with upgrade incentives that appraisers are willing to "overlook". It's all fraudulent and the banks are in on it too hoping to continue to make loans. It's really a house of cards and we could see a massive collapse unless they find new ways to prop it all up.
They are taking advantage of this shit while it lasts. Building is very cyclical, they know the good times won't last much longer. Every builder I know is trying to hoard as much cash as possible to weather the upcoming shit storm.
Is it way to buy lumber directly from mill
How about storing materials now at these prices? I’ve been considering sheet goods but would like to store some lumber too.
Prices might very well continue to fall.
@@L.J.01
Yeah I know but Zip sheathing hasn’t changed much at all. Standard #2 or better has fallen a lot but I don’t think it will drop to much further as the supply will shrink to keep prices stable. They spiked due to supply issues.
This is wrong. As the housing market continues to crash. Building materials will as well. Be patient. Pedo Joe has destroyed everything. Stagflation is coming soon and it will be horrific.
I think material and labor cost will continue to fall because they've clearly been absurdly, gratuitously, greedily inflated since 2020, and prices have only just begun to fall. There's still plenty of room before the floor is reached, possibly even another year or more. If you consider the fact that interest rates are still going up and the Fed has given no indication of ending rate hikes this year, it stands to reason that prices will continue to fall. I am just starting to plan my home build for probably 2027 and I am very confident that prices will be significantly lower by then than they are now.
Gotta realize the labor isn't just greed. There's a severe shortage of skilled tradesmen now. The result of 30 years of pushing everyone into college rather than blue collar jobs. There simply isn't any supply to meet demand. Not sure about materials. That seems sketchy with companies making record profits.
@@rangerdoc1029 Of course, I realize that no situation has just one cause, but when it comes to current inflation, the numbers don't lie. Profit margins in nearly every industry are up compared to pre-covid times. That means at least part of recent price increases is going to pad the bottom line, not to cover increased costs. Every business is entitled to make a nice profit, that's the whole point, but when margins become excessive at the same time they are whining about rising costs, it becomes obvious that greed-flation is certainly partly to blame for rising prices.
Can you do a video on a my house cost ?
What's crazy to me
Is that Lumber Futures
Have mega plummeted
From where they were
Per contract
But local costs
Only down 20ish%
with all the recent disasters, building supplies are rare and expensive, as are builders themselves
In my area I have a choice. I can build my custom home which I would have to take out a smallish loan to complete it. This loan essentially is being used because of contractor gouging. So basically I'm financing the contractors brand new truck so to speak.
Or, I can pay cash for a similar resale home. I have the money. I'm in control of it. It's funny how contractors think, in this market, they hold the higher hand. 😂. Don't give into them. It's a free and open market. Not the cartel some contractors want it to be😂
Could you do a cost breakdown on an already built house (used car) and compare it to one that is already built and explain the differences in a comprehensive way. Because I sense a scam. (used car) Show us an itemized list.
Time to revisit my home owners policy. My home is “valued” at about $670k, but my insurance is only giving me $230k to rebuild if it were a total loss.
You can raise your personal item coverage to 1 million for extra $50. payment on your premium so that you can use 1 million to rebuild new home. That is how to go around on your term.
That seems like some pricey land value.
Don’t worry, soon the value of your home will reach the current insured value. LOL!!
funny my insurance company keeps moving the value up ... along with the premiums
@@moelo5930 California.
This is why I'm getting an owner builder loan, screw these contractors. They're obviously price gouging. Funny how when you ask for an itemized list a lot of them don't want to give it up, and if they did, materials are double what you would get at big box stores. I'm going to get a FAT binder of estimates before I even try anything, and let these people know that it's obvious what they're up to. No, your work isn't worth 30k if your laborers are only making maybe 20 an hour. Sorry. Enough is enough
Lately contractors here in nj have been asking to be paid for quotes . I've never heard of such a thing but maybe I'm crazy
Be ready to have a difficulty getting a loan if you are doing builder-owner. In all of Ohio, I came across only on bank that would grant a construction loan without a licensed builder.
I agree with you 💯 %
@jameskarrie298 First Federal Savings. I was starting conversations with Matt McKenzie in their Newark, OH office. I am planning on following up with him next week. Note that rate with likely be 1.5% - 2% higher than if you had a builder
@@johnjackson9235 Must be a US thing. I had no issues getting a construction loan with the Royal Bank when I did mine. They did releases upon completion inspections. Would I do it again? No. Banks are as bad as contractors...only the homeowner gets shafted in the end. On gouging, I couldn't believe what some guys were trying to charge me. I took materials out where I could and bought them myself, and did the work myself where I could. It also ensures that the work is done properly to my standards, not theirs. The key though was checking the ego and shrinking the house size to what I actually need. It will save you a lifetime of property taxes too.
Why are builders quoting higher prices then?
see the fred charts! price crash but at up platou!
What about concrete and steel builds ?
Builders still charging huge amounts in New England and blaming material costs. But people are paying. The rich people don’t care, so they’re keeping the demand high and people with normal budgets are priced out. Especially with code changes requiring tons of insulation, the cost to build new will likely never be attainable even for people who we would consider to have great salaries. Sad times.
1:30 The OPEC of wood constrains lumber prices. The conspiracy is starting to develop. There's people behind the scenes pulling levers to make things so that people can't afford homes.
Today is always the right time to buy.
bs
Says anyone in the real estate business.
Do guys have anyone in South Africa that can build homes
All fine and dandy until you find that every builder is booked more than a year out. It's still $130/sq ft here, which IMO is ridiculous.
What area are you in where the cost is $130/sqft
Builders still charging $300/ sq ft where I’m at
No shit I live in rural southern Illinois and they still charging $155/sq ft..
Thx stock market and fake money we call debt!