Home Articles Thinking of Building a New Home in 2023? This is What it...

Thinking of Building a New Home in 2023? This is What it Will Cost

https://www.freepik.com/premium-photo/two-business-man-professional-engineer-worker-house-building_5104472.htm#query=home%20building&position=5&from_view=search&track=sph

Building your own home is an excellent idea if you want to make sure you are getting everything you want the first time around, but it is likely going to cost you more than purchasing an existing home.

The costs for a newly constructed home can vary quite a bit, so it’s a good idea to know a bit more about what you’re going to pay before you start. If you want to know a bit more about this, keep reading to answer the question, “How much does a new construction house cost in 2023?”

Cost of a New Construction Home in 2022

When it comes to building a new home, the price is mostly in the supplies and labor costs for your builders, but there are plenty of other hidden costs that add up. If we want to get a good look at what the cost will be like for 2023, we need to examine the costs for 2022 and factor in all of the things that might make it change in the new year. 

In 2022, the average cost to build a home was about $290,000, which might sound like a high number, but the average price of purchasing an existing home was $400,000. Building a home has become far less expensive for quite a few reasons, and that’s why many new homeowners are choosing to design something themselves instead of fixing up someone else’s design to make it work for them. There has also been a significant rise in the number of housing development companies which have done a fantastic job of providing well-built houses at a great cost. 

Cost of New Construction Home in 2023

The following year will likely see the same trends as the housing companies continue to build master-planned communities with low housing prices. “Many people have started seeking out these neighborhoods for their great prices and close-knit communities. They also prefer these newly built homes over older homes because they don’t want to deal with constant repairs and upgrades,” says VA real estate agent Dustin Fox of Fox Homes

There was a prominent trend within the last few years to do “house flipping” or buy an older home and make the repairs as needed, but the rising cost of home improvement materials has made that more challenging for many people to make their dream homes come to fruition. Building companies often pay wholesale prices for the large number of materials they are purchasing, but the prices haven’t come back down for hardware stories that have needed to rely on the supply chain. 

If you are looking to build something completely unique, then you need to consider hiring a smaller building company that specializes in new builds in your area. These companies will often come with a higher price, but you will be getting exactly what you want instead of relying on choosing from a pre-designed blueprint. They also might take a little longer due to the fact that they will need to go through many steps to ensure that the permits for your build are in order as they go. 

The cost of land has started to rise all over the country with a new wave of people who are looking to build sustainable property for homesteading. This increase in land prices has led to people building smaller. If you are choosing to build your own home in 2023, experts are predicting a slight increase in the cost of building a home, but the price is likely to affect the land more than the house itself.

A Look at the Changes from 2022 to 2023

The pandemic might seem like a lifetime ago, but for many sectors, it is still something that affects their business all the time. The COVID-19 pandemic shut down construction in many areas due to the restrictions that came along with it, and it took a while for those projects to finally be completed. This backlog set many companies behind in production, and the rising construction supply prices in 2022 made it even harder for them to complete pre-pandemic projects. 

When you combine this with the high gas prices that were sweeping America in 2022, it’s easy to see how hard it has become for construction companies to remain afloat. There are many significant issues that have dissipated within the last year, and many companies have done an excellent job recovering, but it has still driven up the prices temporarily. You can expect a slight decrease within the next year, but there is no way to predict when it will happen. 

If you are building your new home in 2023, you can expect to pay a bit more than you would last year, but the price could go down even further as the year goes on. There were a large number of issues within the last year that made it much harder for construction to happen, but luckily many of these issues have leveled out before the new year hit.

2023 looks to be a great year for home construction, but it could take a turn at any time, so it’s a good idea to start building your new home as soon as possible. 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here