Lubbock builders say price of homes increasing because of construction cost

Published: Jul. 22, 2022 at 9:15 PM CDT
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LUBBOCK, Texas (KCBD) - Betenbough Homes is reporting an average $6,000 increase in the price of homes because the price of supplies has gone up.

“Housing cost has been a story really since 2020. There’s unprecedented demand for housing, which often makes the supply chain cost go up,” President of Betenbough Homes, Cal Zant, said.

If you’re trying to put down roots, Zant says it’s going to cost more for everything it takes to build a home; that includes the asphalt foundation, the brick walls, the PVC pipes, and everything in between. Even fuel prices have an affect.

“We’ve started a distribution company to where we can take deliveries directly from manufacturers, do the deliveries ourself, do drop-ship,” Zant said. “Ways to still provide great products in the home but at a great price.”

Zant says his company is getting creative by focusing on smaller homes to lower the price. These are the cottages that are 1,000 to 1,200 square feet, two bedroom, two bath homes.

“We weren’t offering those before but as the price increases have happened, we’ve introduced those to the market, so we can keep that entry level price down,” Zant said.

Zant says there is a huge demand for housing right now.

“Not just nationally though, although we still have a huge housing crisis, locally Lubbock is growing dramatically, and we have a ton of customers still moving to Lubbock from out of town,” Zant said.

That demand has led to a waiting list for homes that has been lingering for years.

“In 2016, we were building about 600 homes a year, and then a few years after that, we were building 1,000 homes a year, and I think this year we’ll close right around 2,000 homes,” Zant said.

Zant says prices are starting to stabilize, but are still higher than usual. A year ago, it was about $205,000 for an average home, now it’s over $217,000.

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