Summer 2026

This summer has been a home building whirlwind in the real estate/construction news segment. We are constantly reading about rates either surging or falling. Tariffs cannot be overlooked when pricing items out. Lastly, solid labor and workmanship is still a hot item, and the ICE raids have hampered this even more. Everybody wants affordability, but can that really be defined? I think the above points make this a “affordability” an extremely subjective word. I think you can really only look at it on a case-to-case basis because what is affordable to some may not be to others. Then, what is affordable with the price shocks we see today may seem extremely affordable when we look at where the market could be heading. Lastly, we compare what we are paying now to what we paid years ago and think…darn. Below, I break out affordability into three separate points, which may help you decide if building now is right for you or not:

1. MATERIALS

Everybody knows that materials will also, historically, trend up. We pay much more for a 2×4 now than we did 15 years ago, but the value of the project/home is also more. This means that current homeowners have gained some huge appreciation in homes they have owned in this time allowing this to be somewhat moot. However, the short term flexibility of prices are important to look at. Furnaces, for example, have fallen in price over the last 6 months, but still look more expensive over the years overall. I would probably suggest looking at the top three items, with regard to affordability when making a building decision. Lumber, copper, and concrete. Copper and lumber are both down pretty substantially over the past year, but concrete is up due to the flooding. This is 2 out of 3 of the big three items falling in price that go into a home that show now is a good time to build. Keeping your thumb on the pulse of these items could help you in the timing of building a home and finishing at a good equity stance.

2. RATES

Mortgage and borrowing rates are completely out of our control. The Iran war and oil prices have played havoc with wild swings in the treasury bond yields. The 10 year bond yield is what typically drive mortgage rates. The “spread” (difference between the 10 year yield and 30 year fixed mortgage rate) typically falls between 2-2.5%.  So, if the 10 year yield is at 4.5% we would expect to see a 30-year mortgage rate around 6.5-7%. Typically, this relationship acts with the 10-year yield altering first and the 30-year mortgage rate mimicking the course a couple weeks later. So, if you begin to hear big downward trends in the treasury yields, get ready to file for your pre-approval soon!

3. LABOR

Generally, picking a builder (Gem Homes!!) should typically be your first step. Obviously, the devil is in the details with how high-end or economical a home can finish out. The bones and construction of the home should be paramount on either end of the spectrum, however. Let your builder (Gem Homes!!) manage the labor entirely because our name is going on the quality forever. We have good relationships and can use our productivity in an “economy of scale” fashion to ensure that labor rates are held at a reasonable level while the construction of the home does not suffer. There are less and less people entering the trades, and with the average home builder age in Indiana surpassing the 50 year old age, I see labor and trades becoming an issue. Finding the cheapest guy does not always pay, and the quality of the work will suffer. When we build, we try to have our crews go from one home to the next, and stay building. This way, they know they have work coming, we know we have dependable guys/gals, and you know that you are getting a rate that is fair at a good workmanship level.

Contact us, message us or call with questions, or anything you may need help with. We will always be honest and upfront with our conversations to save you time and money while building a great home!”