New builds are more expensive than ever, according to new data from the National Association of Home Builders. Expensive building materials and increasing labor costs both contributed to the rising price-per-square-foot of single family homes that began construction in 2021.
The median price-per-square-foot of spec homes started in 2021 jumped 19% YoY, while custom homes increased 5%
Price-per-square-foot is the highest in the Pacific and New England regions at $206 and $198, respectively
Prices are the lowest in the East South Central region at $111 per square foot
These sky-high building costs are another reason we’ve seen such high prices for existing homes. It’s hard to build when everything from lumber and steel to labor is more expensive than ever. That pushes buyers to look for existing homes. Buyers: the best deal is to find a good house in a great location and make it your own. That’s where the value is, and that’s where you’ll find the most affordability.