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InletBchDweller

SoWal Insider
Feb 14, 2006
6,804
263
54
Prairieville, La
Uncle Timmy said:
Well, I've never quoted myself before but I wanted to follow up on that comment from last January.

It indeed looks like some of the prices for construction are coming down.

As anticipated, the subcontractors are getting a little bit hungry for the first time in several years, and are starting to bid competatively. I am hearing some numbers for framing, for example, down to 60% of what they were a year ago. Material costs are still up, and will probably remain so for a while, but at least we are begining to see labor costs come down.

It will be a while before I can give a more definative "overall" idea of where construction costs are going.

I agree, Mr. IBD is in construction and he has told me that subs are calling him :blink: wanting to know if they are starting a new house soon. They are needing work....I wish I was in the position to start building now b/c I am sure that there is some good labor for cheaP.. Subs have also "made a killing" by charging outrageous prices for their work, and many times it is shabby work.
 

Uncle Timmy

Beach Fanatic
Nov 15, 2004
1,019
22
Blue Mountain Beach
Got a call today from a big name builder in the area who is looking for work. This is the first time I have ever had these folks actively seeking new projects.

And I continue to get reports from other builders that subs are lowering their bids.

Good news for anyone looking to start a new home.
 

Uncle Timmy

Beach Fanatic
Nov 15, 2004
1,019
22
Blue Mountain Beach
dsilvar said:
I'd like them a little hungrier. $150 per sqft is going to be the norm pretty soon.

I will keep everybody advised as to the new pricing range when the complete numbers start to come in.....however this will take some time -it will be a few months to get the final construction costs on some ongoing projects.

I will be surprised if the numbers get down to $150/sf -that would be great though! Then Uncle Timmy can afford to start my long planned house addition!!!!
 

Franny

Beach Fanatic
Mar 27, 2005
4,046
410
Pt. Washington
dsilvar said:
I'd like them a little hungrier. $150 per sqft is going to be the norm pretty soon.
I believe $150 is completely unrealistic. Builders do not come up with these prices off the top of their head....they have to buy the material, pay for the subs, who by the way are not all coming down on their price, especially the competent, professionals. These subs have enough work for the next two years!! And remember you get what you pay for!
 

Indigo Jill

Beach Fanatic
May 10, 2006
321
14
Point Washington
www.sowalscene.com
Although I am not at all involved in the buidling industry - and hope building costs come down so I can build the guest cottage I've wanted for the last 2 years - I have to say my logic runs along the lines of what Franny is saying here. Look at the cost of everything else around us in South Walton - food, energy, entertainment ... even my hairdresser just raised her price to $45 a cut from $30 :shock:.

I'm trying to open a small business and it became very clear during my feasibilty study and in talking with other business owners that business ownership here is an incredible challenge. The operational costs are on par with a major metropolitan city (read NYC and San Fran, not Memphis or St. Louis) but we lack the population (your customers and qualiifed employees) to justify the cost(s). Overhead, labor costs, material costs, insurance - I can see why a builder may need to charge the prices they do AND still make enough money to live comfortably.
 

Franny

Beach Fanatic
Mar 27, 2005
4,046
410
Pt. Washington
Indigo Jill said:
Although I am not at all involved in the buidling industry - and hope building costs come down so I can build the guest cottage I've wanted for the last 2 years - I have to say my logic runs along the lines of what Franny is saying here. Look at the cost of everything else around us in South Walton - food, energy, entertainment ... even my hairdresser just raised her price to $45 a cut from $30 :shock:.

I'm trying to open a small business and it became very clear during my feasibilty study and in talking with other business owners that business ownership here is an incredible challenge. The operational costs are on par with a major metropolitan city (read NYC and San Fran, not Memphis or St. Louis) but we lack the population (your customers and qualiifed employees) to justify the cost(s). Overhead, labor costs, material costs, insurance - I can see why a builder may need to charge the prices they do AND still make enough money to live comfortably.

Absolutely and I forgot to mention insurance! :eek: Thanks for the reminder IJ.
 

Pirate

Beach Fanatic
Jan 2, 2006
331
29
So the materials all go up but the price per square foot comes down. I really didn't realize thats the way it worked. :dunno:
 

Uncle Timmy

Beach Fanatic
Nov 15, 2004
1,019
22
Blue Mountain Beach
Pirate said:
So the materials all go up but the price per square foot comes down. I really didn't realize thats the way it worked. :dunno:

The labor component of the equation is what is coming down. Labor costs in south Walton have been highly inflated over the past few years because of the demand. Demand slackened and now labor costs are becoming more competitive.

At one point the labor cost in the south part of the county was 3X the same labor cost north of the bay. Folks were charging what they could get away with and people were willing to pay for it.

Labor cost drops faster than material cost increases = overall construction cost comes down.
 
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