Building a home is never easy and cost to build can vary across the country. In Monterey County, cost per foot can range from $200-$1000 per foot depending on materials and location. There are a lot of factors that contribute to the home building price tag. In 2017, larger-than-expected cost increases topped the list of biggest market surprises according to a survey of more than 300 home building executives conducted by John Burns Real Estate Consulting.
The biggest surprises of 2017 for home builders were:
Bigger cost increases: 40%
Stronger demand: 23%
Worse weather: 12%
Worse construction/entitlement delays: 11%
Lennar/Cal Atlantic merger: 4%
Builders also say labor costs continue to rise and material costs—particularly lumber, drywall, and concrete—saw price increases in 2017, which translated to higher costs for builders.
Source: “Cost Increases Top 2017 Housing Market Surprises,” John Burns Real Estate Consulting (Dec. 28, 2017)