The Rising Costs of the Building Industry

Costs are rising in every industry and the building industry is not immune for many reasons.

Food costs are up. Fuel prices are up. And real estate and building costs are following suit, causing some desirous homeowners to feel like they have no options right now. There is no doubt that it is more challenging these days. The construction professionals of Mt. Tabor Builders may have options.

The upward trajectory of construction spending itself can be attributed to many factors including inflation, labor costs, rising insurance rates, materials and even permitting costs. This is according to the NAIOP building website.

“The cost of resources make the end costs more,” says Rick Yohe, head of Mt. Tabor’s Sales & Marketing Department. One example he gave was that of a 4′ x 8′ sheet of building material costing $6 prior to the pandemic, $50 during and now settling at $15. He also pointed to the major price increase in concrete and sub-contractor services over the last four years. This doesn’t even take into the consideration the elevated interest rates. The combination of the two means cash buyers and those financing are squeezed by the current climate.

These realities often discourage those considering building their dream home, because they just don’t see the same value as a few years ago. Rick says scaling back plans now can change the perspective. One approach is to build in phases. He said building what you need now and planning add-ons to complete the dream home later can be an effective approach.

The best idea is to meet with builders and ask questions.

“We were truly blessed to have had the opportunity to work with Willie Eby and his associates from Mt. Tabor Builders. We would recommend them to anyone who is considering any size building project.”— Glenn and Marcy K.

Click on this link to read more Mt. Tabor Builder testimonials.