Numbers Don’t Lie: Why You Can Build Your Custom Home Right Now

Published March 30, 2022

It seems like there’s just no good news lately. Day after day, newscasters and headlines alike relay reports of one sky-is-falling situation after another. And the custom home building industry hasn’t been immune to alarming reporting and rising red flags.

While we can’t ignore things like rising costs, rates, and supply chain issues–nor would we advise any homebuyers-to-be to do so–we can take a step back and get some perspective on the matter. There HAS to be a light at the end of the tunnel or some good news amongst the chaos, and we’re to help you find it. We’ve crunched the numbers to help you make a well-informed decision when it comes to building your custom home. What you need to know first:

Material Costs are on the Rise

According to the National Association of Homebuilders, building costs rose 14.5% in 2021, with supply chain constraints, environmental issues, and increasing fuel costs driving this rise. Homebuilders and experts alike expect these costs to continue rising. 

Mortgage Rates are Rising

Mortgage rates are rising, but remain historically very low. Though mortgage rates have increased since their record lows in December of 2020, they remain historically low at 4.4 percent. For context, the last time the rate was this high was 2018, and the record high is 16.64 percent.

Rising costs and historically low mortgage rates have the potential to balance each other out. We’ve detailed a hypothetical scenario below to give you an idea of how this might play out (taxes and fees not included): 

Graphs showing why you can build your custom home right now!

In conclusion, now could still be a good time to build a custom home as buyers could benefit from historically low-interest rates while costs continue to rise. But committing to a custom-built home is a huge financial decision: consult your financial advisor, potential mortgage lenders, and homebuilders to decide if building a custom home is right for you, right now.

Our best advice? Be honest and realistic with yourself, your partner, your builder, and any others involved to ensure you aren’t stretching your budget unnecessarily, and remember that you can always add onto or upgrade your home at a later date.

You can trust our family at LaFollette Custom Homes to make your custom home a reality. Give us a call at 979-589-8343 or contact us at for a consultation! 



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