Building a home is a major investment, and it’s important to have a clear understanding of the costs involved before embarking on a new construction project. In South Carolina, the true cost to build a home in 2023 will depend on a range of factors, including the size and style of the home, the materials and labor involved, and the specific location within the state. By taking a closer look at these variables, homeowners and prospective buyers can better understand the true cost of building a home in South Carolina in 2023.
How Much Does it Cost to Build a New Home in SC
Continual escalation in the cost of building materials seems to squeeze the budget for building a new home. According to the National Association of Home Builders, the price of materials used in construction rose by 8% in 2022. It was not a circumstance and carried the flame year over year implying a 20.4% growth in cost and 33% growth from the start of Covid-19. It significantly hampered the purchasing ability of buyers who were looking into acquiring properties. The unstoppable rise in lumber prices was so threatening for home builders. But after the first quarter of 2022, the price started dropping by 6% which was a sign of improvement.
Along with the direct costs of resources, there are required services in a construction process like transportation and warehousing. Such costs have risen 15.2% since the start of last year. If we take the pandemic period, construction service costs grew 39%.
The yearlong changes in major construction materials’ prices are shown to provide a true view of the rising costs of building homes across the United States.
|Major Construction Material Price, Five Year Historical Chart|
|Type of Material||Years|
|Lumber ($Per thousand board feet)||527.70||979.9||887||435.5||416.2|
|Concrete ($Per ton)||128.2||141.4||130||125||124|
|Iron Ore ($Per ton)||129||143.5||158||96.5||84.5|
The annualized growth of concrete price is 1.2%. In the middle of January 2023, lumber price per thousand board feet was $344, and by the end of the month, it stood at $527.7. The high range of lumber prices in 2021,2022, and 2023 shot up construction prices to a different intensity. Although the prices have fallen significantly over the past two years, they seem to snowball again based on the forecast study. The price of iron ore tends to have dropped this year, but it has seen a 52.7% hike from 2019.
Home prices also increase due to the surges in material prices. Charleston’s home value has increased by 13% compared to last year, Columbia 3%, Greenville 12% and Rock Hill 9%. But not all cities got the same effect. Lake Greenwood saw a drop of 3.4% in house price.
Your home’s build quality is determined by how durable it is and the finishes that you choose for it. Home builders have to consider either the short-term or long-term benefits of different building styles. Prioritizing long-term investments would increase the cost of building, needless to say.
Build quality includes the exterior and interior of a home. A home designer charges $50 to $200 on average depending on different requirements. Home makeover trends that have entered the vogue recently, such as patterned hardwoods, luxurious outdoor space, and versatile interior painting are expensive. They lift the building cost of new properties.
Accessibility, living facilities for residents and geographical convenience of a region increase and decrease local land prices, which have a direct involvement with the construction cost of a residential home. South Carolina has a wide number of mid-size towns that are not well-known yet serve at their best. Consider Lake Greenwood. You cannot ever imagine waterfront views and affordability coming together, but the town does it for you. It is possible to build a home in Lake Greenwood on lakefront lots that are worth less than $100K.
Depending on factors such as hourly wages and building materials, building costs vary from region to region. Builders in Greenwood have access to a large selection of construction supplies, which puts the starting home construction cost at $100,800. Contrarily, the minimum construction price is $427,050 in Hilton Head, more than 4 times Greenwood’s.
How To Lower The Cost of Building Your First Home in SC
Choose Local Builders
Price keeps going down when you choose local builders. They do not have to travel to your location and then get started. They give you cost-saving tip-offs. They can help you get building materials at reasonable prices for having a regular connection with sub-trades. Besides, their knowledge of that specific location will save your future home repair costs.
Reduce Square Footage
The cost of construction is usually set on square footage. The best way to reduce the construction cost is to reduce the floor size. You better think about a cozy and functional home interior. Rather than making an outward, consider upward with a two or three-story design. Lowering the square footage by 20% will save at least 10% of your money.
Build In Fall or Spring
The builders’ market is supposed to be hot in summer when most US constructions take place. It will save you money if you schedule the project for the fall or spring.
Is 2023 a good time to build a house in South Carolina?
Building a house in South Carolina in 2023 could be a good decision, depending on your individual circumstances. The state’s relatively low cost of living and favorable tax policies may make it an attractive location for new construction. Additionally, the area’s mild climate and proximity to beaches and other outdoor recreational activities may be appealing. However, it’s important to consider factors such as the current real estate market and availability of building materials and labor before committing to a project. Consulting with a local real estate professional or construction expert may help you make an informed decision.