Are you thinking about building a home this year? If so, you need to keep these three factors in mind.
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There are three challenges you'll encounter if you want to build a home this year that I wanted to outline for you.
- 87% of builders are concerned about labor shortages in the market. This is why prices have increased for both labor and materials. If you build a home this year, expect and understand that it will take longer, it may be harder to get subcontractors out there, and you might have to pay a little bit more because of market shortages.
- The cost of land. Land prices have gone extremely high, and since there's a shortage of inventory on the market, builders aren't building at the mass rate we saw before because of the affordability of land. Be aware that if you find a good piece of land that seems realistic, it’s probably worth a second look if you think you'd like it.
- Government zoning fees and regulations. Cities make money by charging these fees, so we're seeing them go up. These increases force builders to have to deal with them and it can bottleneck the home building process.
