The Cost Of Building A Custom Home
If you’re thinking of building a custom home in the near future, you should be mindful of growing material costs. For the past year or two, the cost of lumber, metals, and other raw materials used in the construction of a home has been growing; a new trend in construction that has consumers intrigued about the expense of building their own custom home. You might be asking which materials have gone up in price, why, and what it implies for you and your custom home. As a result, our Domta team have identified a few crucial elements to assist you in determining the cost of creating your Ottawa dream home.
The Cost of Lumber Is Increasing
Lumber prices have climbed by 150 percent as of July 2020. The general public’s demand for lumber has risen dramatically as house repairs and renovations have become more common. Many people are spending much more time in their homes as a result of Covid-19 and the restrictions that have been imposed, giving them the opportunity and motivation to complete home improvement tasks that they may have been putting off. A rise in material demand leads to an increase in the cost of those materials.
We’ve witnessed an influx of investors trading lumber as a commodity, in addition to an increase in demand. Timber futures are being acquired by investors, who will eventually control the price of lumber purchased by customers in stores, raising the price of lumber across the board.
The Factors That Cause Lumber Prices to Rise
We’ve already spoken about how Covid-19 has boosted lumber demand, but that’s not the only way Covid-19 and the culture of 2020 have influenced material costs. Many lumber mills were temporarily shut down due to the limitations and lockdowns of 2020 and 2021, while many people were at home and anxious to get started on repairs and improvements. With many timber mills temporarily suspending operations, we’re seeing a surge in demand for lumber that can’t be met, driving up the cost and availability of construction supplies.
Many banks cut their borrowing rates to stimulate economic growth and activity, resulting in an increase in the construction and purchase of new homes, resulting in increased material demand for both renovations and projects, as well as full home construction.
We’ve also noticed ongoing challenges with trade and importing during 2020 and 2021. International trade and shipping have been slowed by border restrictions, which have resulted in lumber being left in warehouses or shipping containers for long periods of time because it is unable to cross the Canadian border. Over the last year and a half, demand has soared, but supply and importation have declined dramatically.
Costs of Other Materials are increasing
While timber is the most visible example of growing material costs, other important home-building materials are also rising in price, driving up construction expenses beyond lumber. Metals are also growing more expensive to secure, making critical home components such as furnaces, garage doors, ductwork, and wiring more difficult and expensive to incorporate into new construction and renovations.
Construction companies and builders suffer increases in expenses from their suppliers as resources like metal become more difficult to obtain and importation is delayed or discontinued entirely, forcing them to raise their own pricing to stay up with the revenue.
What Does This Mean For Your Domta Custom Home?
We at Domta know how important it is to develop homes that are both cost-effective and high-quality. Despite a considerable increase in material costs that shows no indications of abating, we continue to put our customers and their financial requirements first.
We are prepared to handle this increase in cost while still keeping affordable and suitable prices for our consumers because we already have extensive skills and experience in sourcing and building with lumber. Our goal is to secure lumber from the start of the home construction process so that you may lock in the best pricing for your materials as soon as a blueprint is prepared and authorized.
Banks are still offering extremely low credit rates to encourage economic growth, which means that some of the cost of materials is subsidized by the low-interest rate, allowing you to receive the best price possible.
Unfortunately, we know that the cost of materials will continue to climb for the foreseeable future; but, we also know that mortgage rates will remain low, making now the greatest time to lock in a new custom house for yourself and your family as of summer 2021.
When the cost of materials rises, financing the construction of a custom house can be intimidating; but, at Domta Homes, we work with you to build your Ottawa dream home at a reasonable cost.