Tag: home building

home construction

High Lumber Prices Increasing Home Building Costs

Choose an Experienced San Jose Homebuilder

Creating an accurate budget for your home construction project has become more complicated in 2021. The rising price of lumber is increasing the cost of home building and renovations. In fact, the volatile lumber prices and short supply are making it difficult to avoid cost overruns and supply delays.

As you plan your new home construction or renovation, it’s important to choose a San Jose Area homebuilder with years of experience. To stay within your budget, you want to ensure that your construction company has a strong network of suppliers and vendors, and the skill to avoid costly errors. At Flegel’s Construction, we are working hard to expand our list of reliable suppliers. Our goal is to keep costs down and projects on track for homeowners in San Jose, Cupertino, Santa Clara, and Mountain View.

Anticipate Higher Costs for Home Building and Renovations in 2021

According to the Wall Street Journal, the cost of lumber is four times that of historic prices. Lumber prices have exceeded $1,500 per thousand board feet (mbf), a square foot of wood one inch thick. What does this mean for homebuyers?

Let’s look at how the cost increase impacts your construction budget:

  • Although the prices vary by region, at $400 per mbf, it might cost about $9,800 for the framing lumber and structural panels for a 2,000 square foot home. At $1,600 per mbf, the cost of lumber for the same project skyrockets to over $39,000.
  • Surging lumber prices have resulted in an average price increase of $35,872 for single-family homes, according to the National Association of Home Builders.
  • According to a recent CNN article, the March median home price rose by 17.2%. At $329,100, that’s the highest price since 1999 when the National Association of Realtors started tracking home prices nationally.

What’s Causing the Lumber Price Spike?

Several factors contribute to recent high prices and the volatility of lumber in general. People held off buying or building homes during the pandemic. This led to a drop in lumber prices and the closure of several sawmills. Now that the housing market has heated up again, there’s an unprecedented demand accompanied by extremely short supplies of lumber.

As lumber production ramps back up, you can expect to see a drop in lumber prices at some point, but it is not likely to happen soon. At Flegel’s Construction, we’re looking for innovative ways to keep the total cost of construction down by looking at the following options:

  • Using alternative materials where possible
  • Providing highly experienced construction managers to help avoid cost overruns
  • Scaling down the complexity and scope of renovation and construction projects by focusing on the essentials

We can help you save money on your remodel by planning for realistic timelines and budgets

At Flegel’s Construction, we manage projects with time and cost saving measures in mind. Despite the rising prices for lumber driving up costs of home building and renovations, we can help you realize your dream home. Check out our portfolio of remodeling projects for inspiration.

Contact us to expedite your construction or home renovation project in San Jose, Cupertino, Santa Clara, and Mountain View.

IN THE NEWS

2018 Silicon Valley Modern Home Tour

2018 Silicon Valley Modern Home Tour

Join us on June 9th for the 2018 Silicon Valley Modern Home Tour. Be sure to see our project “Sunnymount Avenue” along the route!

Read more

Make Your Bathroom Kid Friendly

Make Your Bathroom Kid Friendly

Flegel's Construction Co., Inc. can help you discover "10 Ways to Make the Shared Bathroom Welcoming for Kids."

Read more

TESTIMONIALS

  • Video Testimonial

    Read more

  • I would hire Scott again in a heartbeat

    I would hire Scott again in a heartbeat. He did our Eichler total remodel from roof to radiant. The workmanship is 5-star. Scott understands the uniqueness of Eichlers and modern design.

    Read more

  • I am confident that your expectations will be far exceeded…

    “Our home in Palo Alto was in need of help. Built in the early 1950s and barely updated since, there was a lot to do. Over 12 months and two phases, our home was transformed into the perfect mid-century modern oasis for our

    Read more

  • As easy for as us as possible…

    “We interviewed at least 7 contractors for our Eichler remodel and decided on Flegel’s construction and I am so glad we did! Working with Scott and his crew was such an pleasant experience. We had heard so many horror stories

    Read more

  • Stands by his work…

    “I cannot say enough about Scott Flegel. He is on the ball. He works on the project with his employees. He has very high standards and his employees follow his example. Our architect has come back to look at the project

    Read more