If you're looking to build that dream home, you'd better hurry up. Construction costs for new homes in the Twin Cities have bypassed their low point and are on the rise according to an article in the Star Tribune. The price per square foot for new construction in the Twin Cities is $150, a four year high.
The reasons are many and varied. There is a lack of skilled labor as many construction workers moved to other industries during the recession. Many lumber mills had to close shop when the housing market's bottom fell out. Those that stayed in business had to scale back production during the housing bust. That has led to a current lack of supply for building materials and a backlog on orders from builders.
With increased consumer confidence, along with the fact that new construction is still a bargain compared to 2007 prices, many consumers are back in the game and looking to build. This puts builders in the power position of being able to demand more money for new houses.
Another factor in the pricing increase comes from the lack of develpable land in the metro area. Until more land comes available for building, current lots are going to sell very quickly and at a premium.
With all that said, building a home is still feasible and within your grasp. If you'd like to build, give us a call and we'll walk you through the options out there. Call us or e-mail Sharla or Eric for more information.
Source: Star Tribune, "Prices of New Twin Cities Metro Homes Accelerate"; and Michelle Schwake, Stafford Family Realtors
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