Skyrocketing New Construction Prices: 3 Tips to Lower Construction Costs and a Call to Action

Don’t be alarmed, but between 2015 and late 2022, the prices of new build homes have surged by almost ninety percent! We recently read about this in a CBS article. And there’s another concerning trend. The price gap between new build homes and existing ones keeps widening. It has reached around €86,000 according to Vastgoed Actueel*. That’s why I’m sharing my three tips to reduce construction costs.

Tip 1: Avoid Excess Building Material

Housing projects can significantly exceed budget if there are inaccurate calculations of the amount of building materials needed. Excessive leftover materials can result, putting the financial health of the construction company at risk. Additionally, disposing of unused materials sustainably involves increasing costs.

Tip 2: Ensure Accurate Time Estimations

Incorrect time estimates for project phases can lead to delays. For instance, misjudging the time required for obtaining permits or concrete curing can disrupt the entire project, incurring extra costs and disturbing the schedule of other involved parties.

Tip 3: Monitor and Control Construction Costs Continuously

Develop a detailed budget and closely monitor it throughout the construction process. It’s crucial to identify potential cost overruns promptly to take corrective measures before expenses exceed the budget.

We’re eager to discuss how we can assist you with these three tips. Feel free to contact us for more information.

The Impact of Incorrect Figures is Significant

One major reason for the increase in new build home prices is, of course, rising construction costs. Therefore, cost-saving measures (wherever possible) are crucial. Insufficient understanding of the figures can lead to more new build homes remaining vacant for extended periods because fewer people can afford new construction.

In Conclusion

What strategies do you see for reducing new build costs? I’d love to discuss this with you. I’ve also experienced that existing buildings are more appealing at the moment.

I believe it would be interesting to start a joint discussion about this and learn from each other. Perhaps costs can be reduced by sourcing more locally, thus limiting transportation expenses. Is what’s being built aligned with the preferences of new residents? Are we looking at Vinex districts or tiny houses?

Overall, we can make a significant impact on the cost side, but I’m curious about other ideas to make new build homes more affordable. It seems highly necessary…

Alfred van Duren

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