Deflation in construction costs.

[handyman]

One thing that hasn’t been discussed very much, even in this forum, is the effect of deflation in construction costs, in the face of diminishing construction activity.
Certainly, the price of construction materials is being affected. See http://www.randomlengths.com to review the dramatic fall in the price of lumber and OSB panels which has occured in the last two years or so since the peak in U.S residential construction activity. The producers of other construction material, like drywall or windows are also under similar stress.
Likewise, construction employment is also now starting to fall off a cliff, which should also create further deflation in construction costs.
In the face of excess supply of construction materials and construction labor, the cost of new homes will fall. This, in turn, serves to create further downward pressure on the prices of existing homes and further pressure on home owners with little equity. Yikes!

[PerryChase]

Yes, lumber prices have dropped precipitously and will continue to drop for lack of demand in my view.

That will make new construction pencil out at lower price points. As new construction comes in below resale houses, it will hold down housing price.

Here’s the price history of lumber. I’m too lazy to graph it.
http://www.nahb.org/generic.aspx?genericContentID=527

[Anonymous]

[Cow_tipping]

Concrete price is another thing you should look at. As is bath fixtures and drywall etc.
I believe they all spiked right after Katrina atleast in the South east.
Cool.
Cow_tipping.

[BikeRider]

I’m an electronics engineer, and being the engineering type, I build my own structures. I had been wanting to build a shed a couple of years ago, but OSB had gotten up to $18 a sheet (stuff I use on the exterior walls under the siding and for roof sheathing). A few years before that, a 4′ x 8′ sheet of OSB was only $6 a sheet. Knowing previous pricing, I couldn’t stomach spending the additional $10 per sheet and figured that if housing crashed, prices would drop. I waited and now OSB in my area is back down to $7 – $8 a sheet. Studs have also come down. Shingles are still a bit high, but I guess they may be affected more by oil pricing. I built my shed (16′ x 30′) a month ago and saved a bundle for waiting. I think I used 42 sheets of OSB in the structure, not counting the tongue and groove plywood for the floor (which had also dropped in price). I saved over half of what it would have cost to build the shed two years ago.

P.S. My friends call it the super shed, because it is so large. But I use it as a shed, so, to me, it is a shed.

[PerryChase]

BikeRider, just curious, where do you buy your OSB sheets? Are those the same as metal siding/roofing? I want to build a 10×20 pavillion (free standing patio cover) that has an island/tropical look — kinda like a Balinese gazebo but with metal roofing and concrete slab (for low maintenance).

[no_such_reality]

[img_assist|nid=2403|title=Random Length Lumber Prices|desc=|link=node|align=left|width=466|height=373]

[Cow_tipping]

OSB is oriented strand board. Like plywood but more like random bits glued together. Between plywood and powder board.
You probably should try either a standing seam metal roof – $$$ or a seamless roof (AKA trailer style roof) Both are steel and excellent for durability and strength. However the seamless needs work every 15 or so years. The screws that are exposed need to be replaced 15 years or so. Standing seam is supposedly 50+ year.
I wanted to build a Log house – yes a 2500 sqft 1 storey with full basement out of 8X8 White pine log. I literally could not have contractors return my calls last year. Now I have them calling me at random and have saved over 75,000 on the thing just in materials. I doubt labor is falling much anyway around charlotte.
Cool.
Cow_tipping.

[BikeRider]

PerryChase, OSB is not suited to being exposed directly to the elements. It is fine under the roofing felt and shingles, and I find it great on the exterior walls when I’m nailing on vinyl siding. But if OSB gets wet, over time it puffs up and delaminates. The roof on my shed is engineer trusses on 2′ centers, then OSB sheathing, then roofing felt, then shingles with roof vent. The walls are 2×4 studs, then OSB, then Tyvek wrap, then vinyl siding. Instead of concrete I laid down large stone, then length ways 16′ (end to end) 6″x6″ treated beams (4′ on center), then 16′ 2×4 treated for floor joists on 12″ centers, then 3/4′ treated plywood. I can jump up and down on the floor and it is rock solid. I bought all of my supplies from Lowes. I think I spent around $5000 building the super shed. $1000 of that was for two pairs of double steel doors (one double door at an end and one on one side). I then partition the building, giving the wife 1/3 and I took 2/3 (I have more junk…motorcycles, the tools to build the shed, the tools to tile our floors, etc, etc). As a comparison, I got a price quote for a pre-made shed from a local builder. The cost of a new 14 x 24 shed, delivered was around $6600. So, building it myself, mine cost less and it is 16 x 30.

[PerryChase]

BikeRider, when you said shed, i was thinking metal building.

I’m basically thinking of a concrete pad with 4 posts and a roof. I’ll cover the concrete with slate. Home Depot and Lowes only have limited metal and plastic roofing. I’m looking for some nicer metal roof panels. I need to check out the building supply places. I’m expecting to pay about $2500 to build this myself.

I got pie-in-the-sky figures from contractors over the years so I never made it a priority. I also want to build a courtyard so perhaps now is the time to revisit this project.

[Cow_tipping]

BikeRider …
You have motorcycles … pray tell …
I do too … virago 1100, maxim (air and water cooleds), 2 savages, a vulcan, a GS500 and others that are apart.
Cool.
Cow_tipping.

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