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Dreaming of Building a Custom Home? Why Waiting Could Cost a FORTUNE.

It’s the most dreaded time of year for home builders.  After the glow of the holiday season has faded and the soil in Northeast Ohio has frozen as hard as rock, builders start receiving price increase notices from suppliers.  We know it’s coming, and it happens every year like clockwork – the only question for us is  “how much is it this year?”

The Reality of Rising Costs

Since 1965, residential construction material prices have increased by an average of 4.8% annually.  The only exception?  The Great Recession (2007-2009).  That’s just three years out of the last 60 when prices didn’t climb.

Most of us remember 2007–2009, and ‘recency bias’—our tendency to overemphasize recent events—can make it tempting to think prices will drop again. But history tells a different story. Prices have risen in 57 of the last 60 years, and there’s little reason to expect that to change.

What Does This Mean for Your Custom Home Dreams?

Perhaps you plan to build the custom home of your dreams for $500,000 but decide to wait, hoping for lower prices or interest rates—or to save for a larger down payment. With a 5% annual increase, that same home will cost:

• $525,000 in 2026
• $551,250 in 2027

In just two years, the same home will cost over $50,000 more—money you could’ve saved or invested elsewhere.

Now, consider this: if you save $2,000 per month in 2025 for a larger down payment and wait until 2026 to build, your savings ($24,000) would be completely offset by the $25,000 price increase. In fact, you’ll actually lose money—and miss out on home price appreciation, which could add another $25,000 to the home’s value.

In total, waiting one year could cost you $50,000 in price increases and lost equity.

Is Now Your Moment?

Today’s new home prices might seem high compared to a few years ago, but they’re almost certainly lower than they’ll be in the future. The old proverb says it best:

“The best time to plant a tree was 20 years ago. The second best time is now.”

The same applies to building a home. While buying in the past isn’t an option, starting now ensures you lock in today’s prices and begin enjoying the benefits of your custom home sooner.

Let’s Build Your Dream Home

There’s still time to get your custom home on our 2025 build schedule. At Hostetler Family Homes, we combine exceptional craftsmanship with a personalized approach to build homes that stand the test of time.

Ready to take the next step? Schedule a no-obligation discovery call with us today and see how we can bring your dream home to life.