Des Moines Real Estate Blog

Your Economist of Choice, Your Realtor of Choice

  • Adam Van Lin, Realtor
    Burnett Realty
    10200 Hickman Rd. #100
    Clive, Iowa 50325
    Cell 515.344.1068
    Fax 515.331.3401
    Licensed in Iowa

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Cost of New Construction

Posted by adamvanlin on August 25, 2011

The cost of new construction rose significantly in July compared to a year ago.  The BLS index rose 7.3% from July 2010.  This means it is 7.3% more expensive to build a house today than it was a year ago.  With prices down, it is becoming more difficult for builders to build new houses.  Not surprisingly, we have been seeing a decrease in new building permits in the state of Iowa over the past year.

For consumers, this will lead to a drop in supply, which the housing sector desperately needs.  Even in Des Moines, we have slightly too much housing supply on the market which continues to put downward pressure on prices.

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