How Construction Material Shortages Could Affect You!
As we all well know, COVID-19 has completely changed everyone’s lives in unexpected ways.
One of the biggest changes has been families spending much more time at home in the last year than ever before – now living, working, and playing all at once in their homes. Spending so much more time cooped up like this has given way to yet another unforeseen side effect of this pandemic: a huge uptick in new home builds and DIY construction projects. The housing market has seen an unprecedented demand and construction supply has become very limited and difficult to procure. All of these factors have resulted in substantial cost increases across the board.
This December 2020 ConstructionDive.com article reports that lumber was the most-cited material shortage at 31 percent, followed by steel and electrical supplies. The article goes on to say that the shortages are not only affecting the costs but also the lead times and experts say the material shortages will not go away any time soon.
At Keystone Homes, we have seen our material costs increase by roughly 10 percent and our development costs have increased by 15 percent, just over the past 12 months. We are experiencing price increases each month due to the increase in cost and ever decreasing housing supply along with increasingly high demand. We at Keystone value transparency and want our customers to stay informed and know what is driving these significant cost changes.
While these price increases have affected all home builders, there are still many benefits to buying a new construction home this year. In many ways, the time to build a new home has never been better! Mortgage rates have dropped to a historic low – allowing you to get more home for your money. In addition, home and property values are also skyrocketing, which helps ensure that your investment is well worth your while.
Many families might have noticed in the last year that they need more space for a home office or they have simply outgrown their current home and are ready to move. Another benefit of the current market would be that the time to sell a home has never been better! If you are looking to sell your home and purchase or build a new one, the market is in short supply and homes are going fast! Eager buyers have few homes to choose from currently, so you can rest assured that you are likely to sell your home quickly, allowing you to purchase and move into your new dream home in record time!
When it comes to building your home, Keystone Homes will always give you the most accurate and up-to-date pricing. If you are ready to dive in and build your dream home with Keystone, or if you have any questions, click below!
Sources:
https://www.constructiondive.com/news/experts-construction-material-shortages-to-continue-in-2021/592705/
