It’s natural for homeowners to be cautious when building a new home—it’s a big decision and undertaking, after all. And taking time to do your research and find the right-fit builder is essential. However, too much delay could negatively impact your ability to build the right home for your family, from new permitting restrictions to a potentially higher cost. Here are some reasons why it may be better to build a new home sooner rather than later.

Costs may be lower now than in the future

The costs associated with anything, including building a home, rarely decrease over time. And at times, homebuilding costs can increase substantially, as we saw during the pandemic or following a fire or flood.

Due to the nature of inflation, the costs of both materials and labor tend to increase year after year. Therefore, waiting several years to build a new home may mean you’ll pay a significant amount more for the same house. For example, based on inflation rates for 2021 and 2022, a homeowner who decided to build a $2M home in January 2021 but waited to contract on that home until January 2023 could end up paying around $2.26M.

Fortunately, our price guarantee protects you from increasing costs of materials and labor while your home is being built. Your home’s price is locked in upon contract execution, so you don’t have to worry about inflation related to your initial quoted price.

Ordinances may become more prohibitive

Dan Carroll​, President of the Thomas James Homes Southern California Division, points out that cities, particularly in California, have often implemented policies over time that increase the cost of building a home or prevent homeowners from including certain features. Some examples of this trend in practice are additional insulation requirements, solar requirements for new homes, and the banning of natural gas in some municipalities.

Therefore, if homeowners have their hearts set on certain amenities, or they simply want to save money by avoiding possible future residential home requirements, it may be wise to build now. Our Private Client Group can discuss with you what ordinances may be on the horizon in your area to help you determine if building now might help ensure the features you want in your home.

Potential greater appreciation of your home

You could increase the appreciation of your home by making the decision to move forward earlier. Hypothetically, if the value of a home goes up $20,000 every year, then waiting three years would cost the homeowner $60,000 in appreciation. Considering that homeowners who wait to build could see both a loss in appreciation and an increase in the cost of building, one can see how delaying the build process could affect financial gains.

“The sooner you get in, hopefully the more time you have for appreciation on your home. You couple that with an opportunity to build in an environment where the costs are about as low as we’ve seen in probably 10 plus years, it’s a pretty unique situation to build equity in your home sooner rather than later.”

Dan Carroll​, President, Southern California Division, Thomas James Homes

You can start living the lifestyle you want

Aside from the financial considerations, a major reason why it could be better to build your new home now is the ability to move in sooner. Many homeseekers need a new home because their family is growing, they long to live in a more desirable location, or they need a better layout to support their lifestyle. The longer they delay, the longer they must live in a less-than-ideal environment.

At TJH, we help our homeowners create a home that supports their family’s lifestyle today and in the future. Our design experts will work with you during your design studio consultation to select the home plan, structural elements, and personalized finishes to create the home of your dreams. We can also help you find an off-market homesite on which to build your new home in a sought-after neighborhood with walkable, picturesque streets; close proximity to great restaurants, shopping, and outdoor activities; easy access to highways; and other features that support your desired lifestyle.

When you build with TJH, you won’t have to wait years to start living your ideal life. Our delivery guarantee means we promise to complete your new home within 12 months of starting construction. In this way, we strive to alleviate the fear of the unknown that many homeowners have when thinking about tearing down and rebuilding.

Why now is a great time to build with TJH

Our library plans are designed with our high standards in mind, while also prioritizing the most cost-efficient process for homeowners. As a result, homeowners may experience savings when building a new TJH home compared to a renovation project or custom build. Dan notes that it’s unusual to see a large reduction in cost in the homebuilding sector, meaning it could be a good idea to avoid too much delay when deciding to build a new home.

“We can build a home at a guaranteed price and time frame. That’s what we offer that’s unique. So that we take out a lot of the fears that people may have, and the opportunities when you’re able to do that become pretty endless.”

Dan Carroll​, President, Southern California Division, Thomas James Homes