Construction Pricing Update January 2023
We always seek to provide transparency and to educate potential and existing clients about the best building practices. We know that cost is top of mind when it comes to building a home, so we are now providing a quarterly cost per square foot report in our newsletter to help homeowners understand current costs and the reasons behind them.
Toby Jernigan, Living Stone’s Operations Manager, notes that, overall, price per square footage has stayed the same. “We’re still seeing prices between $550 and $700 per heated square foot. It’s important to note that when it comes to building, price per square foot only tells part of the story. There are other important factors to consider, some of which include material quality, energy efficiency, and labor costs. Read our in-depth article explaining construction pricing here.
Material prices have seen a notable shift recently. “They have dropped significantly in the past few months, and seem to have steadied off for now, but they are still above pre-Covid levels,” Toby explains. “This pricing is expected to hold for the next few months, at least until early/mid spring. Beyond that, the future is unclear.”
Labor trends are not looking as positive as materials, but it’s not all bad news. “Labor pricing has not moved,” concedes Toby. “In fact, in some cases we still continue to see incremental increases. The expectation, according to my sources, is that this trend will remain as-is for the foreseeable future. On a positive note, we are seeing labor shortages lessen, meaning the availability of trades on projects is increasing, and turnaround times are lessening.”
Supply Chain Update
There is mixed news on the supply chain front, as well. “Supply chain issues continue to ease, making many building material products easier to come by. This isn’t the case for all building products. Many appliance manufacturers are still dealing with such a backlog from Covid, and some brands are still greater than 6+ months out. Some window manufacturers and interior door companies are still seeing 15 to 20-week turnaround times.
About Toby Jernigan
As the Operations Manager for Living Stone Design + Build, Toby Jernigan oversees the estimating, scheduling, and production flow of Living Stone projects. With over 20 years of industry experience, he provides the invaluable expertise required to keep highly customized, complex builds running smoothly. Toby lives in Canton, NC, with his wife, and spends his free time fly fishing and trail running in the great outdoors of western North Carolina.