Why are building costs so high?

We are hearing more and more how people are shocked at how expensive it is to build a new home in Utah.

It was recently reported that much of that is due to the $3.6 billion project to build a new Salt Lake City airport. They are spending between $50-$70 million per month on the airport construction and have a work force of 1,750 tradesmen. They can pay more for materials and labor and offer incentives to attract building crews away from home building projects… Last month no one could buy rebar in the state of Utah because the airport had bought all of the supply available. Construction on the airport will continue until projected 2024.

Brand new construction homes have felt this impact. The cost of building a custom home is between $170-$200 per square foot in Utah right now (including the lot). A production “tract” home will cost less, between $120-$135 per square foot.

“Experts say the trend is being driven by several factors, including dwindling availability of undeveloped land, rising costs of building materials, and a shortage of construction labor, particularly in skilled trades.”

If you are looking to build a brand new home or purchase/sell an existing home, we would love to help! Call or text us today!

About Ashley Jensen

Ashley Jensen & her team specialize in Provo. They live in the area and call tell you all about the best individual schools, BYU rental market, downtown Provo changes and details about specific Provo neighborhoods. Zillow shows the team as having the most sales in Provo of any agent or real estate team.
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