Cost to Build Update 2023 

I’m planning on building a new home in California next year. My brother-n-law lives 10 miles from the Mexico border in Texas. I’m looking into getting my drywall,nails,hardware etc across the border and having him haul it here. I’ll probably save around $50-75K.😊

Thanks for updates...

Nice to have each step calculated separately. Thank you!

You're the best Michael.

glad to hear from you again.. thought you might be sick or worse.

Thanks for this important information.

People are still out to lunch and living in 'mini-mansion' fantasyland here. Custom houses that are being built here are costing $100,000 more than what they would be able to sell them for (with the land cost) yet dummies are still paying contractors way too much, keeping prices high. Especially with the massively increased interest rates.

New To The Channel! I LOVE IT! Love From NY/Massachusetts! I Gained So Much Knowledge & I Will Be Signing Up For Online Course Real Soon 💯!!! I Just Wanna Say Thank You! Especially For That Link You Put In Couple Of Videos That Have House Plans That We Can Buy & Tweak Depending On The State We Live In! Thank You! Thank Youu!!

Awesome information!

Thanks for the update

That “dream” is getting more and more out of reach😂

Great video 👍

nice video thanks

Please update us again on this in sometime, I would greatly appreciate it. My wife and I are wanting to have our dreamhouse built, but aren't quite readly. Thanks

HIgh five for this useful explanation.

deflation to come!

Thank you. Can you please give the latest update?

Does your firm build multi unit properties also? Im in the cleveland market and looking for that

Good information. I would just say that construction is 100% not going to pick up this year. The fed will raise the FOMC rate 3-4 more times so construction loans and purchase loans will continue to go higher. I could see a 30 year fixed with 720 credit and 20% down go above 8% by summer. And layoffs have not even started. Hoard cash.

Did you mention asphalt shingles?

housing starts to tick up this spring?, as current new home builders are heavily discounting and the 30yr is headed to 7.5%. I dont think so

Is it way to buy lumber directly from mill

Home prices have decreased -3.5% for the last 5 months. The biggest drop in short term prices since the index was created in '96. Home prices only fell -1.5% from '06 to '08 (took a while). After '08, prices fell almost -30% before bottoming out in '12. It took over 10 years ('16) for prices to be back to '06 levels. Looking at history, home prices are expected to crash in '23. Some estimates expect a whopping -40%- 50%!

The banks are going to freeze up and not lend as much money out going forward. Interest rates have rose a lot, and people are being priced out of building a new home.

Can you do a video on a my house cost ?

Time to revisit my home owners policy. My home is “valued” at about $670k, but my insurance is only giving me $230k to rebuild if it were a total loss.

I figure that prices are going to drop not so much for lumber but sheet goods which I figure are well inflated. Rebar likely is going to drop as supply and demand from china will also drop. Their largest steel factory just went bankrupt. As to sheet rock it likely will also drop some. Two things are happening New homes are finally getting completed. To say that there is a glut of homes on the market is an understatement. Demand for gypsum products is an understatement. There in my view is no shortage to keep the prices elevated. There is almost zero demand for new mortgages Even Wells Fargo is closing their division. Places like Loan depot are having a hard time and they are a non bank lender. An industry that is losing warm bodies at an astounding rate are folks in Real Estate sales. Another sign that housing is crashing. With this crash the demand for building materials is going to crash. I would not expect to really see this happening till the 3rd quarter. As to the price of lumber It may decline but think we can expect to see more curtailment as demand also shrinks. Seems like more finished goods are hitting the lumber yards.

Pulte just reported 27% gross margin attributed to lower lumber prices. That is a 37% markup if my math is right. Housing seems overpriced when builders have markups like that. Am I missing something?

Why are builders quoting higher prices then?

What about concrete and steel builds ?

Could you do a cost breakdown on an already built house (used car) and compare it to one that is already built and explain the differences in a comprehensive way. Because I sense a scam. (used car) Show us an itemized list.

Because of the increase in concrete. My basement for a 1500ft home cost 110,000!! Then with theses interest rates, pmi, and doing modular. With me owning the land and 20g to put down. Still haves my payments in the 2,000 a month.

In my area I have a choice. I can build my custom home which I would have to take out a smallish loan to complete it. This loan essentially is being used because of contractor gouging. So basically I'm financing the contractors brand new truck so to speak. Or, I can pay cash for a similar resale home. I have the money. I'm in control of it. It's funny how contractors think, in this market, they hold the higher hand. 😂. Don't give into them. It's a free and open market. Not the cartel some contractors want it to be😂

I think material and labor cost will continue to fall because they've clearly been absurdly, gratuitously, greedily inflated since 2020, and prices have only just begun to fall. There's still plenty of room before the floor is reached, possibly even another year or more. If you consider the fact that interest rates are still going up and the Fed has given no indication of ending rate hikes this year, it stands to reason that prices will continue to fall. I am just starting to plan my home build for probably 2027 and I am very confident that prices will be significantly lower by then than they are now.

How about storing materials now at these prices? I’ve been considering sheet goods but would like to store some lumber too.

This is why I'm getting an owner builder loan, screw these contractors. They're obviously price gouging. Funny how when you ask for an itemized list a lot of them don't want to give it up, and if they did, materials are double what you would get at big box stores. I'm going to get a FAT binder of estimates before I even try anything, and let these people know that it's obvious what they're up to. No, your work isn't worth 30k if your laborers are only making maybe 20 an hour. Sorry. Enough is enough

1:30 The OPEC of wood constrains lumber prices. The conspiracy is starting to develop. There's people behind the scenes pulling levers to make things so that people can't afford homes.

see the fred charts! price crash but at up platou!

What's crazy to me Is that Lumber Futures Have mega plummeted From where they were Per contract But local costs Only down 20ish%

Builders still charging huge amounts in New England and blaming material costs. But people are paying. The rich people don’t care, so they’re keeping the demand high and people with normal budgets are priced out. Especially with code changes requiring tons of insulation, the cost to build new will likely never be attainable even for people who we would consider to have great salaries. Sad times.

Today is always the right time to buy.

All fine and dandy until you find that every builder is booked more than a year out. It's still $130/sq ft here, which IMO is ridiculous.

Thx stock market and fake money we call debt!