Rising Prices of Florida New Construction Homes
Home prices are on the rise for many reasons. The economy is stronger. Housing inventory is low while demand remains high (especially with expected future interest rate hikes). These market conditions naturally lead to higher home prices all around, but new construction is subject to some additional pricing factors. Here are a few reasons behind the rising prices of Florida new construction homes.
Limited Availability of Labor
It's getting more and more difficult for home builders to find skilled labor for their construction projects. During the market downturn, many workers transitioned into other industries. They have not necessarily returned to construction now that the market has improved. Furthermore, there's a shortage of new talent entering the market. Builders must therefore compete for workers. Pay rates are the most influential factor, so builders must pay more to retain quality workers.
Increasing Material Costs
The cost of building materials has also risen. Some of this is related to the recent tariffs, but it's not entirely due to that. Inflation and supply/demand factors have also contributing to rising costs. With expenses climbing, builders must pass on much of that to homebuyers in the form of higher listing prices.
More on the Rising Prices of Florida New Construction Homes
What do rising prices of Florida new construction homes really mean for home buyers? Other than higher starting prices, buyers may also notice that builders are less flexible on negotiating prices. Upgrades through third party vendors are also costing more as well. Buyers interested in new construction should be prepared for this and buffer their budgets accordingly for their purchase and upgrades.