Construction Pricing Update January 2023

Quarterly Pricing

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.

Overall Pricing

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 Pricing

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 Pricing

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.”