Over a year into the pandemic and the modular building industry, like all building industries, have seen an unprecedented spike in material and lumber costs. The result has been a substantial increase in the price to build homes in recent months.
Because modular homes are built to order, they face the same cost challenges as site-built homes when it comes to lumber and material, as well as availability of those materials. Supply chain disruptions, as well as fluctuating costs, have not only increased prices for all new housing starts but also slowed down production of homes in Ohio and West Virginia, as well as across the nation.
For instance, prior to the pandemic, the completion time for a modular home once ordered took around six to seven months depending on the time of year. Today, that time frame can be as much as a year. General contractors are seeing even longer backlogs and many are 2 – 4 years out for new home starts.
When making a decision about when to sign the contract to build your new home, make sure you understand the company’s terms and conditions. For instance, with D&W Homes, you have a 45-day price guarantee on all quotes and once your home is ordered, the price on your contract will be the price to build your home regardless of future increases. Not all builders have this type of guarantee and with rising costs, you might find yourself paying thousands of dollars more to finish your home.
In the end, effects on the industry from the pandemic have shown no signs of slowing down. While current costs to build your home might be higher than the last quote you received, you may find you are better off building now rather than waiting and hoping the prices decrease in the future.
As low interest rates begin to rise, your purchase power goes down. Considering we have historic low interest rates, now may be the right time for you to make a commitment to buy a home.
To get a rough estimate of what your payments and interest costs would be at different prices and interest rates, visit the mortgage calculator on our website.