Is it more expensive to build in 2024 as compared to 2023? Our build cost expert DJ Ramdale has the answer.
In this article we cover:
- Stocktake of 2023 build costs
- What the trends are for 2024
- Labour costs
- Material costs
- Is now a good time to start building?
It’s impossible to predict the future but in my opinion, it will be no more expensive to build in 2024 than it was in 2023.
I see a fall in costs of materials offset by wages/rates increases, which means it’s probably going to remain on the whole the same, with the glimmer of hope of interest rates falling which will encourage people to at least make a start on their plans.
Looking back, 2023 was pretty unstable. Starting with materials, there was significant stabilising both in terms of supply and cost. Timber, steel and insulation prices all fell, with still a bit to go in my opinion.
The cost of masonry products is still on the rise, i.e. blocks, cement, ready mix concrete. This is primarily due to cement’s reliance on fossil fuels for production and transport. As we struggle to transition to a cleaner and greener power supply, I can’t see this changing much in the next year or two but hopefully demand for diesel/petrol will eventually drop and this in turn will hopefully reduce the cost of oil as demand deceases. Or at least that’s the theory.
As for labour costs, the cost of living crisis in Ireland and across most of Europe has had a major effect in the last year or so in that wages have been increasing to counteract inflation. Add to that the severe skilled labour shortage in the construction sector and we have a perfect storm.
Unfortunately, it looks like the skill shortage is set to continue. This is down to a lack of apprenticeships – there hasn’t been much government encouragement or investment over the last 20 odd years in construction trades.
But in the longer term, there could be a silver lining. Tradesmen are in high demand and will be for the near future, so a career or job in construction may become more attractive as it can be very financially rewarding.
With interest rates hopefully having just peaked we can look forward to a steady easing over the next two to four years. I hope. This will slowly steady the ship and keep rates sustainable.
What I would say is that it’s never really a bad time to build or equally it never is a good time. Building a new house, extension or even renovating is not or never will be an exact science. Nobody in my 25+ years experience has not had to make some concessions on their building project, be it on a design matter, financial matter, or other.
In my view if you do decide to crack on with your building plans this year, you’re in no worse a position than someone doing it 10 years ago. In all likelihood you’re in a much better position. So be brave, plan well, do your research on costs or get someone to do it for you if you’re not confident in this matter. It’s money wisely spent.
Shop around and be ready to make some compromises. Don’t be afraid to ask for help if you feel you need it. And remember, choose quality over the cheapest (never liked that word) price.
For up to date costings, go to the Selfbuild+ Build Cost Hub
