Construction cost - up, down, or same? (housing, prices, expensive)

[bigtrees]

With the downturn of housing, I'm guessing builders are struggling a lot more since they still need to make a profit. Lower home prices combined with tough lending requirements must be making things tough.

I'm wondering, though, are we seeing any decline in construction costs with the decline of the housing market? At point, the labor cost for construction will have to decline since builders won't routinely sell a house at a loss. I'm wondering if this is happening yet?

Appreciate your input.

[wileynj]

Construction costs are up! The cost to build is alot more today than it was just 2 yrs. ago!

[younglisa7]

My husband and I are building our own home. We started building in June and the prices for materials are sky high. I would've thought since demand is down the prices would be better but that's not the case.

I am amazed at how expensive everything is and the quality is really bad on so many things.

Lisa

[FLBob]

Here in SWFL the cost to build is still about the same. The primary materials that go into homes here; concrete, and steel have not dropped in price. Cost of shipping materials is high. The price of labor has not changed that much.
Today even with the cost of land greatly reduced from a couple of years ago building a new house is much higher than buying an existing home.

[mojo_1979]

Originally Posted by wileynj

Construction costs are up! The cost to build is alot more today than it was just 2 yrs. ago!

This is complete BS. Please cite your sources.

[kevcrawford]

Originally Posted by mojo_1979

This is complete BS. Please cite your sources.

Cite your source that it's not.

The price of construction usually goes as the price of oil goes. Those materials that aren't manufactured in plants where oil is heavily used, still have to be transported in, and transportation charges are way up and rolled into it.

I've currently got homes listed that were built 3 years ago, however, if you were to build them again right now, you'd be looking at about a 20% increase in build costs.

[mojo_1979]

Originally Posted by kevcrawford

Cite your source that it's not.

The price of construction usually goes as the price of oil goes. Those materials that aren't manufactured in plants where oil is heavily used, still have to be transported in, and transportation charges are way up and rolled into it.

I've currently got homes listed that were built 3 years ago, however, if you were to build them again right now, you'd be looking at about a 20% increase in build costs.

Oil is down near $75 a barrel. Labor costs are MUCH cheaper since jobs are harder to come by today.

[kevcrawford]

The drop in oil is still fairly recent, and it'll go back up again. It takes longer than that to see price differences. I'm just speaking from experience that I've got clients paying more to build now than they would have 3 years ago. A lot more.

Labor costs depend entirely on your area. You cannot generalize labor costs throughout an entire nation.

[bigtrees]

Here in Seattle labor costs constantly go up. Minimum wage is $8.07 and set to go to $8.55/hr in January.

I'm not sure what jobs related to home construction pay minimum wage, but I surely think there must be some. Perhaps not the trades that build the house, but lots in the companys that make building materials (hence higher prices for materials).

I've also not seen a decrease in commodities yet (probably due to oil). Hopefully both will drop and then I can build. I refuse to pay more to build a house than I could buy it for, even though I think I'd like to live in my house forever.

[texdav]

Materail soared after the 2005 hurricane season and I would expect for ike to keep them high if not higher. Katrina and Rita caused a 30% hike from waht I read.