{"id":258,"date":"2022-11-08T00:23:10","date_gmt":"2022-11-08T00:23:10","guid":{"rendered":"https:\/\/newerahomes.com\/blog\/?p=258"},"modified":"2025-10-24T18:09:55","modified_gmt":"2025-10-24T18:09:55","slug":"why-does-building-a-home-cost-so-much","status":"publish","type":"post","link":"https:\/\/www.newerahomes.com\/blog\/why-does-building-a-home-cost-so-much\/","title":{"rendered":"Why Does Building a Home Cost So Much?"},"content":{"rendered":"<p><strong>Table of Contents<\/strong><\/p>\n<ul>\n<li><a href=\"#tf\"><span style=\"font-weight: 400;\">The Facts<\/span><\/a><\/li>\n<li><a href=\"#pa\"><span style=\"font-weight: 400;\">Pros and Cons<\/span><\/a><\/li>\n<li><a href=\"#ba\"><span style=\"font-weight: 400;\">Building a Home Starts with Finding the Right Builder<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Building a home from the ground up is an incredible expense. Yet, somehow the prices have only gone up in the past few years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A lot of time, effort, and materials go into creating a home for you and your family. The number of materials you need for the structure alone, like concrete and lumber, are already pricey but added to the custom design and layout you choose to go with adds up to a massive expense.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There is a lot to consider and even more steps than we realize, so let\u2019s look at all the facts to understand why building a home is so expensive.\u00a0<\/span><br \/>\n<a name=\"tf\"><\/a><\/p>\n<h2><span style=\"font-weight: 400;\">The Facts<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The truth is that the price of building a single-family home has increased dramatically over the years for multiple reasons, the biggest being the COVID-19 pandemic.\u00a0<\/span><\/p>\n<p>The <a href=\"http:\/\/newerahomes.com\/blog\/how-much-to-build-a-home-in-bend-oregon\/\" rel=\"noopener\">average cost to build a home in Oregon<\/a> is $287,500.<\/p>\n<p><span style=\"font-weight: 400;\">Construction builds the foundation of your home, so the fact that construction costs went up <\/span><a href=\"https:\/\/www.nbcdfw.com\/news\/local\/construction-costs-hit-highest-spike-in-50-years\/2891677\/\"><span style=\"font-weight: 400;\">17.5 percent<\/span><\/a><span style=\"font-weight: 400;\"> from 2020 to 2021 explains why building homes did too. Not to mention 2021 costs of building were 23 percent higher than they were in 2019.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Construction prices increased like most items during the pandemic and for similar reasons. Delayed packages, a lack of workers, and inflation, in general, are to blame for the high prices that remain today.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Construction is only one of the factors required for a house. Materials, inspections, permits, labor costs, and architectural drawings are just the beginning of the cost you have to pay, and they, too, have increased since the first COVID outbreak.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are the material price <\/span><a href=\"https:\/\/www.jchs.harvard.edu\/blog\/labor-and-materials-might-constrain-remodeling-growth-pandemic-only-part-story\"><span style=\"font-weight: 400;\">changes<\/span><\/a><span style=\"font-weight: 400;\"> from 2020 to 2021 that still linger today:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insulation materials went up 17.3 percent.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cement went up 7.4 percent.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Steel mill products went up 137.4 percent.<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/news.gatech.edu\/news\/2021\/11\/08\/building-and-construction-industry-face-supply-chain-disruptions-there-hope\"><span style=\"font-weight: 400;\">Supply chains<\/span><\/a><span style=\"font-weight: 400;\"> affect building material costs due to the pandemic due to the short supply of lumber, concrete, steel, and other materials. This doesn&#8217;t even touch upon the materials needed for siding, plumbing, electrical, and other additional aspects of home building.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Labor costs changed drastically since the pandemic due to the fluctuation in employment and unemployment rates. Employment <\/span><a href=\"https:\/\/crsreports.congress.gov\/product\/pdf\/IN\/IN11711\"><span style=\"font-weight: 400;\">dropped<\/span><\/a><span style=\"font-weight: 400;\"> during the pandemic, causing inflation to increase, including the labor price.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are myriad factors to consider when building a home. To build a house, you need to have a permit, which alone can cost up to <\/span><a href=\"https:\/\/www.bankrate.com\/real-estate\/how-much-does-a-building-permit-cost\/#:~:text=On%20average%2C%20building%20permits%20can,this%20expense%20can%20vary%20dramatically\"><span style=\"font-weight: 400;\">two thousand dollars<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You also have to consider home inspection costs, which tend to be <\/span><a href=\"https:\/\/www.atihomeinspectortraining.com\/Blog\/InspectionCosts#:~:text=The%20industry%20standard%20is%20to,inspection%20would%20cost%20about%20%24400\"><span style=\"font-weight: 400;\">five dollars<\/span><\/a><span style=\"font-weight: 400;\"> per square foot, which can add up. Down payments are also worth considering since you\u2019ll need that money ready and upfront before construction goes underway.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a side note, when you\u2019re factoring in all the costs and if you\u2019re borrowing money from the bank, don\u2019t forget to check your mortgage rate.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The facts are that a home is expensive to build and is even more so after the pandemic. But the sale price of existing homes is also going through the roof. So, those who want to buy a house instead are not in a better position.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After discussing housing costs and housing prices, let\u2019s now focus on the pros and cons of building a house.\u00a0<\/span><br \/>\n<a name=\"pa\"><\/a><\/p>\n<h2><span style=\"font-weight: 400;\">Pros and Cons<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are positive and negative aspects to building your home. It ultimately comes down to your priorities and what you want in your future home.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Pros<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">From the layout and architecture to paint color and wall texture, your home will look exactly how you want it to. You get to design a home.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One big investment leads to loads of savings in the future. Owning a home may mean home-owners insurance payments, but you save yourself all the money you\u2019d spend by renting a home. Plus, you have a forever place to stay and even pass it down to your children.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You\u2019re in complete control of this project, so whatever you say goes.\u00a0<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Cons<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Building a home is a hefty investment that not everyone can afford. It\u2019s partially a risk, so you must have a plan and know what you\u2019re doing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It takes time to build a home and relies on many outside factors. An example would be, if there&#8217;s a lack of staff, you have to wait months to see your investment become your home.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prices have gone up since the pandemic and inflation, so building a home is even more expensive than it was four years ago.<\/span><\/li>\n<\/ul>\n<p><a name=\"ba\"><\/a><\/p>\n<h2><span style=\"font-weight: 400;\">Building a Home Starts with Finding the Right Builder<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Although building a home is expensive and the average cost has been going up, who you work with to accomplish your goals is the most crucial decision. You need someone reliable and trustworthy because, as was previously stated, you will be working with them for a long time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">New Era Homes is capable of handling all of its customer&#8217;s needs. Building your home and having your own space designed by you is one of the greatest feelings in the world.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The price of building a home is worth all of the benefits that come with it. Many people can only dream of owning their home, let alone building it from the ground up.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re looking to be one of those lucky people who get to build their dream home, <\/span><a href=\"https:\/\/www.newerahomes.com\/contact\/index.shtml\"><span style=\"font-weight: 400;\">request more information from New Era Homes<\/span><\/a><span style=\"font-weight: 400;\"> to start the process.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Building a home from the ground up is an incredible expense. Yet, somehow the prices have only gone up in the past few years.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-custom-homes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why is Building a Home So Expensive?<\/title>\n<meta name=\"description\" content=\"Why is building a home so expensive? It all comes down to the cost of materials and labor. 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