Boise area home builders are having a difficult time coping with unpredictable rising costs for lots, materials, and labor.
Lot costs are spiraling upward due to increased demand and short supply.
Material costs are rising rapidly too as new construction expands rapidly throughout the country.
Framing lumber, sheetrock, concrete, shingles, and other components are literally rising every month in many instances.
Then, there’s labor.
Homes are built with subcontractors and good subs are in short supply, with many of them moving to the oil fields of North Dakota.
I am hearing that some builders are now including “escalation clauses” in their build job contracts, allowing them to increase the sales price if their costs increase.
Others are building estimated price increases into the prices they quote buyers.
If you’re considering building, procrastination is not your friend!
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