6 Things You Must Know Before Designing a New Home
Download our free homebuyer's guide to get answers to some common questions about custom home building.
Every year, home builders brace for the inevitable—rising material costs. Like clockwork, suppliers increase their prices, making home construction more expensive with each passing season. If you're dreaming of building a custom home, waiting could cost you more than you think.
The Reality of Rising Costs
Since 1965, residential construction material prices have risen by an average of 4.8% annually, with only one exception: the Great Recession (2007–2009). That’s just three years in six decades when costs didn’t climb.
Why Costs Keep Rising:
- Supply chain fluctuations
- Increased demand for materials
- Inflation and economic shifts
- Rising labor costs
Many homeowners hesitate, hoping for a price dip. But history tells a different story—prices have increased in 57 of the last 60 years. The likelihood of costs dropping is slim, and waiting could mean paying significantly more for the same home.
What Does This Mean for Your Custom Home?
If you plan to build a $500,000 home but decide to wait, here’s what could happen with a 5% annual increase:
• $525,000 in 2026
• $551,250 in 2027
That’s over $50,000 more in just two years. Even if you save $2,000 per month in 2025 ($24,000 total), the price increase alone would erase your savings—and that’s not even counting potential home appreciation, which could add another $25,000 to the cost.
The Best Time to Build is Now
Home prices today may seem high compared to a few years ago, but they’re almost certainly lower than they’ll be in the future. As the old saying goes:
“The best time to plant a tree was 20 years ago.
The second-best time is now.”
You can’t go back in time, but you can take action now and secure today’s prices before they rise again.
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 bring:
- Exceptional craftsmanship
- A personalized approach
- Decades of experience
- Homes that stand the test of time
Schedule a no-obligation discovery call today and take the first step toward making your dream home a reality.
