Will a Builder’s Boom Lead to Higher New Custom Home Costs?

In the past few years, the status of the nationwide housing market has reminded Fairfield County custom homebuilders like our company, Country Club Homes, Inc., of the simple rules of supply and demand. Too much supply coupled with too little demand equals lower prices, right?  While this is true, it also indicates a reduction in manufacturing, which creates lower inventory, which leads to higher prices in a housing boom.

As the real estate environment starts to improve and recover from years of a languid marketplace, builders may have to deal with this shortage of building materials due to reduced production during the lean years. According to the Census Bureau, national housing starts rose in April 2012 by 2.6 percent. The nation’s largest home builders, who attended the Builder’s Housing Leadership Summit in New York, are singing a different tune. These leaders say their sales have risen by 25 to 50 percent in the first quarter alone.

It’s the news we’ve been longing for, but what are the implications for the individual planning to have a custom new home built? We believe the upswing in home building may create certain challenges for new home construction, specifically with regard to construction scheduling due to materials availability; and potential cost increases due to material shortages.


Overall, as this market improves, and more Fairfield County clients come to us seeking to build custom new homes, Country Club Homes, Inc will continue to look out for trends that may affect building supply lead times and home prices in order to best inform and prepare our clients. As a longstanding home building company in Fairfield County, CT, we are well-prepared to help our clients navigate the particular challenges confronting the home building industry, today.

Are you interested in building a new custom home in the Fairfield County, Connecticut area? Please contact Country Club Homes, and allow us to guide you along the way.

Image via Country Club Homes, Inc. Portfolio