Home construction costs are soaring across the country

If you are planning to build your dream home, now may not be the best time due to supply chain issues and rising construction costs.

Grant Everett thought he and his family would be moved into their new home by the end of 2021. Now they hope to be moved in by the fall. The overall cost of the house has also increased, including an increase of nearly 50% for wood alone.

“You think, ‘OK, great, we finally have a plan’, and you move on, and the next thing you know, the price to get the house built has changed on you. It’s like trying to hit a target moving,” says Everett.

Supply chain issues and rising construction costs prove that if you want to build your dream home, now may not be the right time. (FOX Business/Fox News)

He is one of thousands of frustrated homebuyers building during the pandemic. He said the process was excruciating.

“One of the biggest headaches is trying to plan and budget for a home design,” he said. “And, trying to fit into what you think is affordable, and then finding out that wood is 100% more expensive than it was when you were in the design phase is quite frustrating.”

Michael Turner owns Classic Urban Homes, which built the Everett home.

“The wood for this particular house here, when we first offered this house, it was about $80,000 in wood. By the time we got ready to start, it was $150,000 in wood” , said Turner.

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According to the US Census Bureau, construction costs for single-family homes rose 17.5% from 2020 to 2021, the largest annual increase since 1970.

Turner said in his 17 years of building homes he had never seen a market like this.

“In past markets, you could change the type of materials you were using and maybe find something a little more cost effective,” he said. “But right now, with material shortages, we’re using whatever materials we can get.”

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Phil Crone, chief executive of the Dallas Builders’ Association, said the organization aims to help keep the housing market in his area affordable.

“Every thousand dollar increase in the price of a new home, no matter how it happens, robs 20,000 Texas families of the ability to afford that home,” Crone said.

Now the Dallas Builders’ Association is calling on the government to step in and make adjustments.

The Dallas Builders’ Association is calling on the government to make adjustments. (FOX Business/Fox News)

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“There’s been a tariff on timber since 2017, and all it’s doing is limiting supply and adding to or exacerbating the price increase we’ve seen,” Crone said.

The Dallas Builders Association and others across the country have also recommended building single-story homes and making all possible substitutions in building materials until costs come down.