EVEN AS LIMITED INVENTORY AND SUPPLY CHAIN ISSUES RESHAPE THE BUILDING INDUSTRY, BUILDERS ARE EXPERIENCING CONTINUED DEMAND FOR NEW HOMES.
The most frequently asked question in homebuilding is, “How much will this cost?” It is also the most difficult question for a homebuilder to answer in today’s building environment. Over the past two years, the pandemic has reshaped the building industry at an astonishing pace. There seems to be no end in sight for the escalating costs of both materials and labor as we enter the second year of higher prices,challenging supply chains, and longer build times. So, why are Lowcountry homebuilders optimistic?
The Lowcountry is a unique region, welcoming new residents to temperate weather, romantic landscapes, and a slower-paced lifestyle. With limited inventory housing available but plenty of raw land, prospective homeowners are collaborating with local builders to build their dream home. In an everchanging environment, how are clients able to stay within their original budget? “They’re not,” says Matthew Bader of Full Circle Development,“However, acknowledging this expectation at the start, we set a variable budget for the client and are transparent with the build costs from start to finish.”
Why would someone want to build a home under these conditions? Many new Lowcountry residents are moving to the area for a change of lifestyle. They have worked diligently for many years, saving to enjoy and afford the cost of living in a resort market like Beaufort County. While the cost of building now is higher than two years ago, the net gain on the sale of their previous home should also be greater than it would have been at that time. These additional proceeds can be reinvested in a new home. A new home has many advantages over an existing one: a customized plan which conforms to the homeowner’s needs and finishes the homeowner prefers, as well as lower maintenance expenses and energy costs.
“The decision should not be whether to build, but what to build,” contends Bader. “Collaborating with a builder and architect from the beginning to ensure the lot you purchase is suitable, community covenants meet your expectations, your home design meets your needs, and the cost of construction aligns with your anticipated budget is key to the project’s success.” A homesite’s development can significantly impact the build cost. If the lot requires additional sitework or special building provisions, additional expense will be incurred. Understanding the lot elevations, tree specimens, and site conditions can have a positive impact on a project’s budget from the start. While structural costs are similar across-the-board, specific community architectural guidelines can increase costs significantly with exterior detailing requirements. The most significant variables in home construction continue to be square footage and finish selection. Working with an architect, builder, and interior designer to streamline the floor plan and make finish selections within your anticipated budget will help to control costs from project inception.
For builders like Matthew Bader, navigating the “new normal” of everchanging building costs and supply chain issues will continue in 2022. It can be a frustrating process for builder and client alike. Returning to the question at the beginning of this article, “Why are Lowcountry homebuilders optimistic?” This is a much easier question to answer than how much building a home will cost. Builders are optimistic because they know that working together with committed clients – from inception to completion – will result in creatinga beautiful new home for their client. This commitment and partnership are the key to each project’s successful fruition.
Matthew Bader, Owner of Full Circle Development, has been a custom homebuilder for over 15 years. As the 2022 President of the Hilton Head Area Home Builders Association, Matthew is an advocate for the local homebuilding industry and its members.
ARTICLE & PHOTOS PROVIDED BY MATTHEW BADER, FULL CIRCLE DEVELOPMENT
