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Gerard Construction Blog

06Dec

Navigating the Rising Costs of Home Construction

Custom home building can be a fun process in building your dreams into a reality. Breaking ground, pouring foundation, framing, choosing all of the interior design, and picking where things will go are, while sometimes stressful, enjoyable for our homeowners and, honestly, for us. One part of the home building process that can be less enjoyable are the considerations of your budget, especially as costs increase. Gerard Construction is here to help you navigate every step of the way and we understand the financial part of building well.

Increase in Cost

There are a number of reasons why construction costs are increasing, although, according to US Building News, they have been turning upwards since 2017. In fact, between February of 2016 and 2017, material prices increased by 4.8%. Those prices have continued to climb in the past years. Lumber is particularly expensive due to an explosion in demand along with changes in trade with Canada who supplies a large portion of our lumber. The demand for lumber is due to the increase in building across the country, but especially in Texas as more businesses and families move to our state. By adding in a few natural disasters, like the freeze this year, and supply chain issues from COVID-19, we are left with high demand and low supply, causing a hit to your budget. Rebar, wire mesh, concrete, and even the bottom line of paying employees and contractors are increasing as well.

What We Can Do

Before working in construction, Founder of Gerard Construction, Michael Patranella worked in banking. With plenty of experience on the financial side of business and understanding some of the cyclical nature of loans and the cost of building, being fiscally responsible is important to the company. When we sit down with our homeowners, we seek to understand their wants and their budget and give a fair estimate of what we know we can accomplish. There is always a buffer built in to our estimate to give wiggle room for unexpected costs and changes in supply costs. We also have solid relationships with contractors all over the Brazos Valley allowing for fair prices for their expert services.

Things to Consider

Our team will help you as you are planning your build or your renovation. When we sit down to meet and plan, we will help you think of every expenditure so nothing is a surprise down the road. We can give you an estimated cost for different materials as you are choosing tile, paint, hardware, lighting, and every other part of your new or redesigned home. This process may take some time so feel free to consider compiling a list of “must haves” in your home, “would love to have,” and “we can cut costs here.” This will help us understand what we need to plan more of your budget for and where we can offer more economical choices. Not every homeowner is going to have the same items on their must have list. Someone may focus on the flooring, others may want more money spent on built in storage, but either way it will help us in our planning. By working with our designer, Jennifer Greely, you may be able to find different styles that can provide cushion in your budget as well.

To learn more about how to navigate building or renovating in a time of rising costs, contact our team. Our experience, focus on doing what is best for our homeowners, and knowledge of every aspect of construction will help you build your home within your budget.

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