As the housing market continues to recover, 2017 is expected to continue the trend of rising costs of labor and materials. As a result, home buyers can expect a likewise increase in the cost per square foot for Georgia home builders.
In addition, the upswing in material costs have also led to higher insurance premiums and municipal fees, while home buyer preferences, which include more luxury finishes and home automation and other amenities have also caused a spike in the average cost for custom home builds.
As stated above, custom home builds tend to come equipped with specialized finishes, high-end appliances, and other features you can't find in an existing home. So, the final cost can range anywhere from $250,000 to well over $1.5 million. In 2017, more than one-third (33.1%) of all custom home buyers are expected to pay between $250,000 and $499,000. The second largest percentage of buyers (20.6%) will be homes priced between $500,000 and $749,000.
According to the 2017 Professional Builder House/Buyer Survey, three-quarters of builders and architects report that their costs have increased over the past three years with over 36% of them reporting increases of at least 10%. Things like high-end finishes and appliances and new building and energy codes have resulted in an increase in the overall cost per square foot for the average property. Among current buyers, 37.1% are paying less than $150 per square foot. The second most common range is between $150/sf to $199/sf, at 35.5%.
Today's overall real estate market is being fueled by baby boomers and millennials, but when it comes to custom home builds, it is older Americans who are leading the industry. Nearly 33% of all first-time custom home buyers are aged between 52 and 65 followed by people aged 40 to 51 (29.3%).
Among custom home buyers who are not buying their first homes, the largest percentage (36.4%) are those buying homes that are slightly larger than their previous homes by anywhere between 50 square feet and 499 square feet. Nearly 28% buy homes identical in size to their prior homes and 15.3% buy homes that are significantly larger than their last homes, most by more than 500 square feet.
The most common income bracket among new home buyers is between $100,000 and $150,000. These buyers account for nearly 35% of all new home buyers. The second most common bracket is buyers who earn between $150,000 and $$200,000, at just over 20%.
If 2017 is the year you are finally going to have your dream home built, then Southland Custom Homes has the experience and reputation you need to ensure your home is built right and on budget. Give our Georgia home builders a call today at 1-866-56-BUILD to get started. Our professional in-house design team can help ensure you get a home that is not only tailored to your unique wants and needs, but one that also fits your family's budget.
Visit one of our model showrooms today in Macon (3956 Bloomfield Village Drive, Macon, GA 31206), Dawsonville (98 Bethel Drive, Dawsonville, GA 30534), Marietta (265 N. Cobb PKWY, Marietta, GA 30062) or Winder (429 Loganville Hwy.,Suite 101, Winder, GA 30680) to see all that we have to offer!
Southland Custom Homes builds in the following locations: