The Rising Cost of Construction: What You Should Know Before Planning Your Dream Home
Instead of searching and searching for that seemingly impossible-to-find perfect home, more and more people are turning to remodeling projects and custom builds to get the homes of their dreams. However, construction is more expensive today than it was even just a few years ago—which means you need to make sure you’re fully prepared before taking this big step. Here’s what you should know before planning your dream home.
Construction Costs are Going Up
The bottom line? Construction costs have risen over the past several years, and your dream home today might cost more than you’ve imagined. Here’s why:
- Today’s local laws set forth more code requirements for contractors than there were in the past. More codes and regulations to follow means more licensing fees and overhead costs for contractors and subcontractors to stay in business.
- Material costs are on the rise. Material costs are one of the largest components of any construction budget, and they’ve been increasing across the board recently. Though there are always budget-friendly selections you can make during the planning process, you can expect materials to cost more overall than they used to.
- There’s currently a shortage of qualified, trustworthy contractors. The construction industry has a shortage of reliable contractors and subcontractors right now, which has created an overall increase in demand from homeowners who are only willing to entrust their homes to professionals. Simple principles of supply and demand mean that it’s no surprise construction costs have increased as contractor availability has decreased.
What You Need to Do to Handle Rising Construction Costs
Though construction costs are rising, there’s no need to assume the process is prohibitively expensive or unattainable—in fact, there are still plenty of ways that you can remodel and build within your budget.
Here are three things you can do to make your money work for you:
- Limit the scope of your project. One thing that can drive project costs up faster than anything else is a homeowner’s unchecked focus on his or her “wants.” As you visualize your future home and make remodeling or building plans, try to clearly differentiate between your needs and wants. We always recommend budgeting for your essential needs and also working in a few of your wants, but you’ll need to maintain realistic expectations throughout the process.
- Plan ahead. Poor planning is another way to quickly drive up the cost of your project—but taking the proper time to research, consider, and decide on each step can help you make your money work more efficiently for you. Construction is not a process that you should rush through, so make sure to give yourself plenty of time to work through each stage of the project.
- Choose a contractor you can trust. A reliable, trustworthy contractor is the best resource to help you stay within your budget—but only if you’re working with someone you can truly count on. The right contractor will be willing to sit down with you and go over each aspect of the project to determine where you should invest more heavily and where you can potentially cut costs so that you can get everything you need without sacrificing too much of what you want. Look for someone who is fully licensed, highly experienced, and whom you feel comfortable working with closely.
Craig at Schoenberg Construction is one of the best Custom New Home and Remodeling Contractors in St Cloud and Central Minnesota. He always gives honest, fair bids with no lowball, fake pricing. And there’s no sales pressure, EVER! He never uses cheap materials and never engages in sloppy workmanship. Plus, his company is known as one of the top residential construction companies in the Saint Cloud MN area because he always insists on doing every job exactly right.
Give him a call today at 320-252-0911 for your no-obligation consultation.