Are Construction Costs Going Down Or Up In 2024?

Blog, Construction

You’ve taken the bold step to get a custom-built home this coming year, or is a renovation you want done? But the cost of this project is always a major cause of concern, it’s a major issue in the industry. Why exactly are construction costs going up? Why are they high in the first place? What is the prospect for the new year? Are construction costs going to go up or down in 2024?

The truth is that various factors have led to the increase in construction costs, and these same factors continue to influence costs. The COVID-19 pandemic is a core factor, industries closed, and many supply chains were disrupted. This drove the costs of various construction materials up, like steel, concrete, lumber, etc.

Although the pandemic now seems like a distant memory, it continues to have an impact on the industry. Other factors continue to influence the cost of construction as well. But will construction costs go down or up in 2024? Let’s have a look, shall we?

What are the factors influencing construction cost?

The United State construction industry continues to be taunted by numerous interconnected challenges. This has led to an increase in construction costs in recent years. Some of these factors include;

1. The COVID-19 pandemic

The COVID-19 pandemic is one main factor contributing to the increase in construction costs. Production companies halted, and some closed down permanently during the COVID-19 pandemic. This led to a slowdown in construction projects around the country. Construction materials were not often produced and they became expensive as quantity was reduced.

2. Tight labor market

After the COVID-19 pandemic, the demand for construction workers increased given a robust increase in construction projects. The increase led to a stiff market as skilled laborers had a construction wage growth increase. This had a huge influence also on construction costs, up to this day.

3. Increase in cost of building materials

Another factor leading to the increased cost of construction is the cost of the building material used. When there is inflation in the cost of a material, it automatically increases the construction cost. For example, if the price of steel inflates, the cost of building a steel-framed structure will be higher. The same can be said for other building materials like concrete, lumber, wood, glass, etc.

What implications do these factors have on the cost of construction?

The implication of these factors is that the construction costs will likely remain on the high end for a little while longer. Although the pandemic is miles behind us and the cost of materials has started to dip, construction costs are still believed to be going up and not down in 2024.

The reason behind this is that the demand for construction keeps increasing as the years go by. As the demand for construction increases, construction costs are expected to remain high compared to pre-pandemic costs.

How do you prepare for the increase in construction cost?

Even though it is unlikely for construction costs to go down, there are ways to prepare so your project is not affected. There are many ways you can save money on your construction projects. Some of these include;

1. Use affordable materials

The first step to cut construction costs is to go for affordable materials. Go for fabricated panels, recycled materials, wood, bricks, etc. These materials can help reduce the overall cost of construction drastically and help save money.

2. Keep things simple

Another way is to keep the construction as simple as possible. You do not need to go above and beyond, sometimes, simplicity is key. Try keeping things at the basic; go for straight walls and a simple or straight roof. This way, you avoid all the nooks and crannies associated with designing, purchasing, and constructing complex structures.

Smaller homes can also ease the pain of construction costs. You do not need to build on an acre of land, you can go for smaller-sized homes that will require lower square footage of land.

3. Assemble the right team

Most importantly, it would be best if you assembled the right team for your construction project. The right team will consist of an architect, a designer, a surveyor, an engineer(s), an interior designer, and a general contractor. Each member of this team plays a huge role in bringing your dream home to life in the best possible way, even financially.

Of course, assembling this team can be quite a hassle for anyone, this is why Samkins Construction is unique. Offering an all-in-one service to all clients, you have the luxury of working with all the above-mentioned team members.


Will construction materials go down in 2024?

The cost of construction materials is expected to go down in 2024 following economic recovery after the COVID-19 pandemic.

Will there be more residential construction projects in the USA in 2024?

Yes, 2024 should see an increase in residential construction.

In summary – Are construction costs going down or up in 2024?

Taking the bold step to have your custom home built is a very bold step. But sadly, construction costs are not going down, and it could stay elevated in the coming years. Nevertheless, the cost of construction going up should not deter you from starting this project. By planning ahead and accordingly, you ensure your project starts and stays on track.

Samkins Construction will be happy to work with you to bring your dream home to life. We will work with you to ensure you get the perfect home that fits your budget. With years of experience, you can be assured we will get the job done. See some of our completed works and get in touch now.

Thanks for reading.

About Samkins

Samkins Construction Inc specializes in custom home building, general contracting, design-build, architectural design, construction management, and real estate services.


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