Home builder construction costs finally cooling. Market commentary from our December survey of builders signals relief on the horizon...
#Dallas builder: “Hard costs continue to dip on average $3K-$5K per month. We are pushing back hard to lower our average labor and material costs. They must come down to reflect lower home selling prices.”
#Denver builder: “Almost all the home builders I am talking to are working on cost reductions. They range from -5% to -8% per plan.”
#Phoenix builder: “Front end trade partners are starting to reduce costs from their profits and some labor.”
#RichmondVA builder: “Expect costs to moderate or reverse somewhat in 2023 as contractors and suppliers chase their slice of a shrinking pie.”
#RiversideSanBernardino builder: “Costs were still going up throughout most of 2022. We are now working our way back down.”
#Sacramento builder: “Costs are slowly coming down. Down by about 5% in aggregate from peak in summer 2022.”
#SanAntonio builder: “As we finished out 2022, the trades still were busy, so they were not feeling the effects of the market cooling. They are already starting to feel that now.”
#SanDiego builder: “Since our production is nearly 6 months old, the costs are embedded. We certainly think better days are ahead. They had better be.”
#Seattle builder: “We have seen very few price increase letters for 2023, and actually a few decrease notifications.”
#WashingtonDC builder: “We have not been accepting any cost increases for the last 6 months.”
• • •
Missing some Tweet in this thread? You can try to
force a refresh
