I attended the Corridor Business Journal Economic Forecast luncheon last month and learned a little about how the rising cost concrete is affecting new home construction.
The luncheon featured a panel of local business people who provided insight into where the economy’s heading and the biggest opportunities and challenges they see facing their industries and the Corridor. Charlie Rohde, CEO, King’s Materials/Dakota Red Corporation, said there are fewer cement plants due to mergers of major suppliers. He also said fly ash is very essential to the manufacture of cement, a component of concrete. Supplies of fly ash have fallen recently due to the decline in use of coal by power plants. Both of these situations, as well as other factors, result in a shortage of cement and rising prices.
Of course, this all translates to higher costs for new home construction, especially those that have larger foundations, like ranch style homes. If you’re in the market for a new home, you may find more value for your money in an existing home. The money you save could be used to update some features and turn an existing home into your dream home. Some credit unions in our area now have loan products that allow a buyer to include the cost of improvements in their mortgage. Certain criteria are required, of course. Talk to your lender about this possibility. Or give me a call and we can talk about your options.
What have been your experiences with new home construction costs? Let me know in the comments below.