Building a custom home can be exciting and daunting for a homeowner. It's exciting because it's a chance to have everything exactly how you want it. Daunting because you've got so much to think about: from the design process to selecting materials and finishes. So, should you build a custom home in 2022?
Will it Cost Less to Build a Home in 2022?
Building costs increased by 14.5% in November 2021. Although we don't expect the prices to decrease, we expect a decrease in the growth rate. Nevertheless, it will still be expensive to build a home in 2022.
If you're considering building a custom home, you might be wondering if it will cost less to wait until next year. The answer is: maybe. Building costs have been rising for the past few years, but they're expected to level off in 2022. That means the cost of building a custom home in 2022 could be about the same as it is now - or even slightly cheaper.
What to Expect from Lumber Pricing in 2022?
Although lumber prices are rising considerably in 2022, we do not expect them to hit 2021 levels. Lumber is also likely to experience less volatility as trucking issues lessen and production increases to meet rising demand.
Other Building Costs in 2022
While the cost of lumber is expected to level off in 2022, other building costs could continue to rise. The price of steel, for example, is projected to increase by as much as 5% next year. And although the cost of land is not expected to rise as quickly as it did in 2020, it will still probably go up.
What Does This Mean for You?
If you're planning to build a custom home in 2022, you may want to start the process sooner rather than later. You can lock in current prices for lumber and other materials by starting now. And if you can't start right away, you may want to consider using recycled materials or alternative building methods to help offset the rising costs.
The bottom line is that building a custom home is still a significant investment, even in a time of rising prices. By working with an experienced builder and using quality materials, you can ensure that your home will stand the test of time - and appreciate it as well.
Discuss Your Options with Professionals
It's essential to get expert advice for such a significant investment. Talk to a few different builders to get an idea of what's possible within your budget. And be sure to ask about any current or future trends that may impact the construction of your home.
For example, the way we use energy is changing rapidly, meaning significant changes for home construction in the coming years. Solar panels and other forms of renewable energy are becoming more popular, and many states are mandating that new homes be built with these technologies in mind.
If you're on the fence about building a custom home in 2022, hopefully, this article has helped you make up your mind. Building a custom home is a big decision, but it can be an enriching experience. At Orange Mortgage, we help make your dream become a reality. We offer construction and permanent financing solutions for homeowners in Pheonix, AZ.