2 East Bryan St. | Savannah, GA 31401
If you’re a long-time resident of Savannah, you may have noticed the spike in housing prices lately.
You may be asking yourself, “Why is Savannah so expensive?”
We’ve got the answer for you.
Big Changes
COVID-19 has affected every aspect of our lives.
It’s nearly impossible to enter a public space without seeing a notice regarding masks or vaccinations and possibly a disclaimer about the lack of employees the business currently has.
The homebuilding business is no exception.
Costs of building have shot up tremendously over the past two years due to supply chain issues contributing to material costs.
In the Coastal Empire, materials used to build homes are noticeably more expensive than a year or two prior.
Many factors have played into this such as supply chain disruptions and an increase in demand.
When the pandemic hit two years ago this month, Savannahians saw the mass panic it caused firsthand.
In our very own ports, we saw the backups and delivery delays supply chains faced as millions of people chose to stay home, limiting the spread of the virus.
Many of the measures taken in workplaces impacted how goods were moved around the world. Inclement weather also impacted the chain in early 2021 and 2022.
Even with supplies diminishing, demand was rising.
Spending so much time at home spurred people to take on home-improvement projects on their own.
People are taking out loans to finance their projects and mortgage rates being offered are considerably low as well.
Increased Material Costs
- Copper- Increased from $4,810/ton to $10,221/ton
- Concrete and Cement- Price index increased from 165.8 in to 183.6
- Lumber- Increased from $311/ 1,000 board feet to $1686/ 1,000 board feet (decreased this past summer)
- Drywall- Increased 25%
- PVC- Increased 50%
- Paint- $5,400 price increase (in a one-story home)
- Appliances- Prince increase between 5-12%
Housing Prices in The Coastal Empire
The price to build a one-story 3,300 square-foot home has increased by 61% since 2020.
With Savannah, GA is a hub for history, creativity, sun-chasers, and seafarers, large groups of people move down South each year.
Such people coming to the Coastal Empire, means more money being spent here and more money being spent, which means potential for higher income.
Of course, higher-income paired with a desire to live in the area, means people are willing to pay more for housing. Because of their willingness, builders and sellers increase their prices.
Currently, many homebuyers are taking advantage of low mortgage rates, choosing to build a home rather than purchase an established one.
On the other hand, builders have been forced to stop mid-process due to the market being unaffordable for people.
Homebuyers have experienced construction companies they are contracted with breaking contracts due to rising prices forcing budgets to go out the window.
Unfortunately for some, their dream home might just have to wait a little while.
Home Improvements
Whether you’re buying or selling a home in Savannah, GA or other areas like Pooler, Guyton, Richmond Hill, Bluffton, etc. having quality exterior additions like decks, screen rooms, fences, doors, windows, and more can help with the resell value and make living in the home more pleasant.
For example, if you’re a true Savannahian, you already know bad the mosquitos and nats can get during certain times of the year. Having bug free zone allows you to enjoy to beauty of your view and that gorgeous Spanish Moss that hangs so perfectly.
Fences can help keep your furry critters inside and young ones protected from harm. New windows can keep your home colder or warmer and good windows can save you money on your utility bills due to saving energy. There are so many reasons to consider exterior renovations to improve your home’s value.
Check out our instant online quote section for a free quote for your home in minutes right on your device.
