Premier Construction

5 Reasons Why New Spokane Home Builders Are on the Rise

 

Why would a site dedicated to building talk about other builders?

Well, it’s because when various services are on the rise, it means that there are more options to consumers.

What more options to consumers means, is more chance for those consumers to have poor quality, quickly “thrown-up” homes that should have been their dream home, but in fact didn’t live up to their expectations.

Our aim here is to provide you with quality information up front, with the idea that if you see quality from the get go, you’re more likely to go with quality when you’re ready to build.

So, with that in mind, here is the first of many articles to come about building a home, building a home in Spokane, WA, and building with some of the very best and most cost effective materials available.

Our first job is to show you why the number of builders is on the rise. We’ve picked five.

People Always have a reason to build

Without a doubt, people are always buying homes and building homes.

There are many analysts that will put on reason this or reason that about why people will or won’t be building, but the truth is—people will always be building. It’s called life.

To paraphrase Mark Greene, it’s not about the interest rates (although you’ll see us discuss interest rates in this article), it’s not even about the cost of supplies—really it’s about life. People buy and build new homes for a host of reasons. People get married. People get divorced. People have children. People change their fortune (for good or for ill). And all in all, the basic need for shelter is still very much a reality. People want homes. And because of that basic need—and that very real want—people will always find a reason to build or buy.

And like the classic adage goes—wherever there’s a will, there’s a way.

Interest Rates Are Low

Alright so, we are going to talk a bit about interest rates. The first reason—that people are people and have needs and wants—will reign champion, but here’s the thing about the interest rates—people do pay attention, and if there’s a lower interest rate, guess what happens to the floor plan? Say you’re wanting to build a home in Spokane, Wa—how much more likely are you going to go with a more elaborate floor plan if you can save $200–$300 a month on your bill? You need a home, but how much more are you going to put into your home in the first place?

Oftentimes, it’s been our experience that when people are wanting to build, if the monthly mortgage is suddenly lower, their floor plans suddenly gets nicer.  Right now, with rates as low as 3.85% those house layouts are getting nicer. True, the average is about a percent higher; but still, it’s pretty low across the board.

Housing “Depression”

According to CNBC, the housing “supply” has dropped in the Northeast 2.4% over last year. Now, that doesn’t constitute a depression, but check this out. The entire population has grown 9% from 298.4 million to 325.6 million—almost 30 million—in the past 11 years.

That’s huge.

Forbes talks about this point here

But here’s the thing, within five years, millions of millennials are going to need a home. Within a decade, Generation Z will need tens of millions more. Like CNBC said, the “supply” is low, meaning existing homes are low, and millions of Americans are going to be needing a home. What that further means, is that new construction companies will arise and existing construction companies are going to have to grow in order to meet the demands of the population.

Rise of Construction Cost

The only issue is construction supplies have risen. The cost of lumber has risen because of the new duties and tariffs imposed on Canadian lumber firms. And really this isn’t new—it’s gone on back and forth for years.

While it may seem like this is a negative—and for most it is—depending upon the material used to build, some builders are actually protected here as the cost of these supplies hasn’t risen much. For example, we use the PermaPanel to build our homes in Spokane and Coeur d’Alene. It’s made out of interlocking concrete panels that are structurally superior to stick frame, faster to build, better insulated and more efficient, and most importantly, in the eyes of most of our customers, more affordable. The concrete industry hasn’t been hurt by many of the duties and tariffs and as a result, we aren’t seeing a spike of supply cost.

Not as much building competition

Back in 2006, home builders across the nation employed around 3.4 million people. Contrast that now with 2.7 million workers, and there’s a serious “Help Wanted” sign hanging on the construction industry.

Many companies shut their doors during the recession. We know we had our own fair share of hard times. But we made it through.

However, if we take the population growth and add that to the supply of needed tradesmen and laborers—the only logical answer is that growth is inevitable.