Sure, you can build but CoreLogic has found that it may cost a bit more than some buyers bargained for as construction costs have increased in a number of key areas.
As of July, the downward trend of lumber-based components, fencing, framing, and rough carpentry, has continued. Siding is another material that displayed a downward trend over the past month. According to CoreLogic, siding decreased an average of 1.8 percent across all regions.
Many regions, including the Midwest, Northwest, Southeast, and West Central, exceeded the yearly average decrease, declining 8.2, 8.1, 7.9 and 7.1 percent, respectively.
That’s the good news. Conversely, other material categories saw average increases compared to last year. Paint rose by 7 percent, plumbing grew by 2.7 percent, and electrical increased by 1.8 percent. The report notes, however, that these material categories had minimal monthly gains, increasing on average by less than 1 percent for all regions this month.
Also on the rise, though, are labor rates. Compared to July 2022, labor was higher across all regions and all trades, with the Northwest and West Central regions standing out for higher-than-average labor rates for drywall, plaster, insulation, and water mitigation.
Plumbers, painters, electricians, and carpenters are the biggest contributors, with rates remaining inflated over a year ago. Plumber rates increased by 9.3 percent, painter rates rose 8 percent, electrician rates jumped 7 percent, and carpenter rates increased 6.1 percent compared to July 2022.