The skyrocketing cost of building a home in Albuquerque

The skyrocketing cost of building a home in Albuquerque

(Transcript Snippet): ” Tracy:

Right. But what we do know too, is there are a lot of new neighborhoods. We have a lot of new homes available right now and coming and a lot of new neighborhoods that they have now got ready, that they’re ready to start building. And it’s in all areas of town. Right. We know that they’re still building by the base you know, at the end of one to bow by the Kirtland air force space and [inaudible]. Yep.

Tego:

Yeah, no, there’s a lot in the pipeline and there’s definitely new construction. I, I will say. And I, I mean, this isn’t anything about the builders. It’s just, people are going to have sticker shock on what things are, because I just saw a study the other day, where they looked at a building costs in the last year, about 22% increase in just the cost of materials to build a new right.

Tracy:

And you know, we’ve talked about it on the show, the cost of materials that jumped way up, especially lumber, stucco, concrete, whatever.

Tego:

Well, everybody talks about lumber. Cause that’s, that’s the

Tracy:

Commodity that goes on the commodities exchange that they can really track. What really well,

Tego:

Here we go. Tracy. Here’s okay. So you have a chart. I’ve got a step for that. I didn’t even know that. No. So, okay. So we were talking about lumber, right? Lumber, 115%. Everybody kind of knows that story, but everything steel aluminum up 27% windows doors up 13% flooring up 8% appliances up 8% concrete up 10% brick stucco up 11% drywall up 14%. I’ve heard that one drywall

Tracy:

Framing block up 36%,

Tego:

36%. So, you know, anything that’s concrete stucco that stuff’s gone up quite a bit. Of course, anything that’s wood-based has gone up a bit.

Tracy:

This is a year over year, raw material and labor cost. So we know labor has also gone

Tego:

Up. Yeah. So just to bring that back to the, the positive is there are a lot of new home construction options out there for folks right now. And you know, there, it’s just, the, the prices are higher. That’s just the way,

Tracy:

Right. The good news is, you know, you’re getting new, your repair costs over the next 10, 15 years should be very low. You’re getting energy efficient. I don’t know that any of those new home builders, aren’t building more energy efficient Greenbelt, whatever than they were 10 years ago or whatever. I think most of them are doing a very efficient, you know so that the utilities are less, the home can be more comfortable than maybe it is now.

Tego:

So I think the, just to kind of bring this back, I mean, well, I want to try to tie this together. This whole story about the lack of supply costs have gone up substantially, right? Not, not on just, you know, resales have gone up, we’re tracking somewhere around, you know, 12 to 15% here in Albuquerque year, over year. New construction has gone up even more than that. Interest rates are still down at 3%. But this lack of supply nationally in, in here locally as well, it doesn’t look like it’s going away is what I’m trying to get at.

Tracy:

Right.

Tego:

If you’re waiting for the market, the crash, I’ll just say it. I, I think you could be waiting a long time or waiting for never happened. I mean, there’s always going to be a pullback, right? That’s going to happen, but a market crash doesn’t look like it’s in the cards anytime soon, right?