Build a New Home or Buy Existing part #2

Material and labor costs have been steadily falling too. Because the industry has been decimated, so has the support industry. Material suppliers of all types have gone out of business with companies like Home Valu closing after more than 40 years in business.


Lumber yards are closing and consolidating left and right. 84 Lumber departed the Twin Cities market under the cover of darkness of night shutting down all outlets over one weekend. Pro-Build a nationwide company is consolidating lumber yards and the list goes on. Really no material supplier has been unaffected.

Small business sub-contractors now work for daily wages and the idea of having a team of employees and making a profit on them is almost nonexistent in the residential construction business.

The only thing that has gone up over the last few years is some City permit fees and other related assessments. You would think Cities would lower fees just like everyone else, but when you have taxing authority you don't have to adjust to market conditions.

So yes, it is VERY good time to build. Prices for new construction are about as low as they will go.... but wait, what about buying a used home instead? Tune in tomorrow.