Is this a good time to build?

Q. We have been planning a large renovation of our home but have put off construction for the past two years due to family circumstances. Now, as we’re ready to move forward, we’re wondering, with everything going on right now, is this a good time to build?

A. It is a good time to build. There are obviously many factors involved in choosing when to start, including costs, permits, the right fit for a contractor relationship, the logistics of where to go while work is being done, where to store things — it’s a long list. But there are many reasons not to hesitate, assuming you have all the necessary plans, approvals and money.
The labor force has been shrinking for many years — especially skilled labor and the workers that skilled laborers need to do a job. Associated Builders and Contractors, a nationally recognized industry trade association, began reporting in January 2024 that an additional 504,000 workers would be needed just to complete current construction in the United States. This year, the association is reporting that 454,000 more workers will be needed. Where will they come from, considering that there are fewer people going into construction-related fields?
The Federal Reserve’s Beige Book, which (at least for now) compiles reports on local economics, stated last October that “it remains difficult to find workers with certain skills in some industries such as technology, manufacturing and construction.” As I meet on construction sites, I talk with contractors who are all voicing their frustration that they need trained and skilled workers. Since that problem is getting worse, you may use it as the biggest reason to move ahead sooner than later.
Material prices are predicted to rise as well. One contractor blamed the cost of copper for the higher price of bathroom construction. We compared the cost, seven years ago, of rough plumbing going up, then, from $3,500 to $4,500 dollars. Last week we discussed the cost for the same work, just for supply and installation of the piping, without the fixtures, at $9,500 on average. Lumber from our neighbors to the north and steel from overseas are going up. Typically, by the end of January each year, material prices increase slightly. This year those increases were noticeably greater.
Holding off on your construction job probably isn’t a good idea, based on history. When the economy is booming, prices rise because of supply and demand. When things slow down, manufacturers and trades may have to charge even more just to keep the workforce they gave raises to when things were better or even just to stay in business, to cover their expenses to meet overhead costs. This answer isn’t intended to cause panic, but the statistics are right in front of you, on your smartphone, to follow trends and realize that nobody is going to work for less, and it may be hard to find materials or labor at the prices you hoped for. Good luck!

© 2025 Monte Leeper. Readers are encouraged to send questions to yourhousedr@aol.com, with “Herald question” in the subject line, or to Herald Homes, 2 Endo Blvd., Garden City, NY 11530, Attn: Monte Leeper, architect.