New Construction Costs - CRAZY!

[JoeWras]

Some of you have been helping me dream about my kitchen remodel on another thread. Sounds like I need to keep dreaming and planning before actually putting hammers to nails. This has got to calm down. It is crazy.

 

[68bucks]

We are in NW Ohio and are planning an addition. I know materials are high now, we're shooting for spring. I have a friend that is a builder for probably 20,25 years. Looked at the plans with him and he's at north of $200/ sf. He said they are busier than they have ever, ever, been. So like someone said, supply and demand. Hope it let's up by spring.

 

[morriss003]

Where are the affordable areas? Wailuku? Hana? Hard to fathom $1,500, even in Wailea!

Kapalua is always the most expensive. Least expensive are some Hawaiian Homeland homes ($100) built at cost.

https://www.mauirealestate.com/maui-construction-costs/

 

[BeachOrCity]

I would not sign a new contract to build right now when material costs and labor costs are so inflated versus what they were just 8 months ago.

I got a great deal on a large construction contract I signed in December 2008 and I signed then specifically because the GC and his subs were hungry for business.
I remember when I went to pick cabinets from Home Depot early in 2009 what an incredible deal those were as well.

 

[Raygun99]

2017 Dallas TX area. Decided to downsize from our 1.5 Acre 3200 sq 12 year old home.

Reasons 1) Tired of mowing, 2) A lot of things were starting to need upgrade/ repair. (Paint, AC --(Summer Electric +400) Appliances (DW wanted all new fancy kitchen) Wood floors in need of revamping.. Just a lot of things . I figured 80K to do all of the changes and still end up with a 12 yr old low efficiency home. Sold for $420

Downsized (Ha Ha) to 2800 in a zero lot line community, HOA full yard upkeep.
Lot 67K Custom Build (I way underestimated real cost with new .. ) Build $390K Total $457K /So much for downsize savings / Currently on County books at $485.. Have to say the new construction materials and features are great to have. AC bill in heat of summer never more that $120 --Homes are way more efficient. No more yard work or equip. DW happy!!

Was it worth it? If it doesn't break the bank. YES-- I don't anticipate any major maint issues for 10 years. By then who knows..

 

[ragabnh]

As mentioned above, inflation is coming, Dollar is losing value, it should be a good time to buy a home or upgrade to a better one to hedge against the above especially in the zero interest rate environment. Cash is losing value quickly, stock and bonds are on paper and not safe, Gold is not easy to deal with.

This is part of the reason why Real Estate is appreciating at this time.

 

[FIREarly]

After I retired, We bought bare land and started construction in 2005.

When it was all finished [including solar power], our 2400 sq ft house cost us around $31 per square foot.

Wow, amazing "job"!
Put job in quotes because you're retired!!

$31/sqft AND solar power, WOW!!

 

[Fermion]

You can't even make a tent for $31 a square foot these days.