Hey, what's up everybody! It's TJ with Sanctified Homes, and today I want to talk about key trends in new construction for 2024. There are some important factors to consider if you're planning to build a new home this year, including cost trends, supply chain issues, labor market dynamics, and interest rates. Let’s dive into what you need to know.

Rising Costs

Lumber Prices

Lumber prices have been fluctuating, which is typical given that it's a commodity. While we are currently below the peak prices of two years ago, we are seeing a gradual increase again. Keep an eye on the lumber market as it will directly impact your building costs.

Supply Chain Issues

A significant concern is the ongoing supply chain disruptions, especially with materials made from resin. This includes vinyl siding, PVC products, and many window components. We’ve received updates indicating longer lead times and rising prices for these materials. To avoid delays, make sure to order these items as early as possible in your building process.

Interest Rates

Impact on Building Costs

Interest rates have a substantial effect on your overall building costs. Higher rates mean higher borrowing costs, which can make your new home more expensive. Conversely, lower rates can make it cheaper to finance your build, even if material prices are higher. Monitor interest rate trends and try to lock in a favorable rate early.

Real Estate and Rental Markets

If interest rates rise significantly, it could strengthen the rental market as potential homebuyers may find it more challenging to afford a new home. This dynamic can influence your decision on whether to rent or buy.

Labor Market Dynamics

Skilled Labor Shortage

The construction industry continues to face a skilled labor shortage, which can lead to longer project timelines and higher labor costs. Ensure your builder has reliable subcontractors lined up and discuss potential labor-related delays upfront.

Eco-Friendly and Sustainable Building

Increasing Demand

There is a growing demand for eco-friendly and sustainable building materials. Products like Rockwool insulation, which is made from volcanic rock and offers excellent fire resistance and pest control, are gaining popularity. However, these materials often come at a higher cost.

Benefits

Investing in sustainable materials can lead to long-term savings on energy bills and contribute to a healthier living environment. Discuss these options with your builder to find the right balance between cost and sustainability for your project.

Preparing for Potential Disruptions

Plan Ahead

Given the uncertainties in the economy, elections, and global markets, it's wise to plan for potential disruptions. This includes budgeting for price increases and being flexible with timelines.

Stay Informed

Stay updated on market trends and economic forecasts. Regular communication with your builder and suppliers can help you anticipate and manage changes effectively.

Conclusion

Building a new home in 2024 comes with its challenges, from rising costs and supply chain issues to fluctuating interest rates and labor shortages. However, by staying informed and planning ahead, you can navigate these challenges successfully. Keep in touch with your builder, monitor market trends, and make timely decisions to ensure a smooth building process.

For more detailed information and guidance on building your dream home, check out our resources at Sanctified Homes. If you have any questions or need further assistance, don’t hesitate to reach out. We're here to help you navigate the home building process smoothly and efficiently.

And as always, don’t forget to raise your standard! We'll talk to you soon.