Why it’s so expensive to build a house in Minnesota right now

The price of most of the materials that go in to building a house — things like lumber, steel, siding and windows — has gone up.

It’s expensive to buy a new house right now.

Quite expensive, historically speaking. The median sale price of a new home in the U.S. has climbed pretty steadily since 2011. At more than $320,000 for the last three years, the median new home costs more than twice as much as it did in 1970 (accounting for inflation).

In a sense, not a lot has changed since then: to build a house, you need land, building materials, workers and you have to pay the cost of various fees associated with building.

But increased expense in all of those areas a mean construction costs are historically high, helping to constrict the supply of new homes being built. That’s contributing to a housing crunch that’s putting homes out of reach for more Minnesotans, whose wages aren’t keeping pace with housing costs.

Read entire Article HERE.

"Why it’s so expensive to build a house in Minnesota right now"; by Greta Kaul; MinnPost; May 3, 2019

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