Building in Missoula
As of mid-year 2021, homes for sale in Missoula spent on average between 1-2 months on the market. Whenever it takes less than 6 months to sell a house, on average, the housing market is considered to be a “seller’s market.” So, it’s safe to say the Missoula market remains well on the side of favoring the sellers as we head into 2022.
In this type of market, housing inventory is very tight, and new construction or remodels can become even more attractive. You might be ready to take the plunge for a new build, but are still feeling uncertain about things like building costs, time, and supply chain issues as we head into 2022––and we hear you.
So, let’s break down some of the key considerations to keep in mind when it comes to residential builds and remodels in Missoula, and see if we can come out on the other side with some better guiding information to help you make the right decisions for your family
New construction is my dream. But what’s it going to cost me?
When it comes to new construction costs, there’s good news and there’s, well, middling news.
First – the good. In our belief, the scary spikes in costs of goods have abated. We’re certainly not going to see things get less expensive, but we can expect much less volatility in the prices of building goods. Things have (largely) stabilized, month to month, but the weekly spikes seem to have ended.
Second - the “middling” news. Costs are definitely up but much of that is a correction to the market remaining level for a portion of 2020, but prices likely will not be going down anytime soon.
And how long until my project will be done?
At Confluence, demand has been very high these past 18 months and it continues to stay high. On average, projects are taking 20% longer than they did pre-pandemic. And why is this?
With the spike in demand these past two years, there are just not enough people to do all the work. As a result, we may end up having to wait for a subcontractor who is backed up on another job. Meanwhile, city staff are doing the best they can to manage paperwork and permitting––all while simultaneously managing pandemic protocols for distancing and remote work. Suffice to say, in construction, these pieces need to fall together in a process and are interdependent on each other.
This variability is also why schedules remain fluid. Subcontractors and materials that are ordered months out may not be available when they should. We will do our best to plan ahead, but unfortunately, some delays are expected.
What proactive steps can I take?
If you’re ready to move beyond dreams and into action for your new home or remodel in Missoula, we encourage you to take some proactive steps. Start by asking yourself these questions, and you can also download our Getting Started Toolkit for a longer list of considerations:
How will you create your house plans? Will you use a professional, an architect or a designer?
Do you understand if there are any zoning restrictions on your property?
Does your site have special site needs like a new well or septic system?
Do you have any deal breakers when it comes to sustainability and choices of building materials?
Of all the proactive choices you can take and questions that you can address at an early stage, the one that is most important to us is the first on this list – whether you plan to use an architect or designer. (In fact, we think this question is so important that we wrote another blog on the topic here).
There are pros and cons to either, but whatever you decide, from a contractor’s perspective it’s essential that you emerge with a set of good, well-thought out plans. Comprehensive plans for the project will allow the contractor to best predict both costs and timeline, two factors that are absolutely critical, especially in a remodel.
So how can you tell whether you have a set of good plans in-hand … or not-so-good ones?
Good plans will:
Show exact measurements and dimensions of all necessary details.
Provide a full list of materials to be used
Be ready for submittal to the city.
Not-so-good plans will:
Ballpark measurements and vague details, putting the onus on the contractor to figure it out (more $ and time for you)
Not have clear dimensions
Not have materials listed
Lack the details needed to get a permit from the City, putting the onus on the builder to shepard the plans through the process and add months in some cases to the process