07/30/2026
Buying a brand-new home may seem like it starts with a floorplan and foundation. But long before the first wall goes up, the price tag is already climbing.
Builders are covering costs for:
purchasing the site for construction
securing permits and zoning approvals
connecting water, sewer, electricity and other utilities
meeting building codes and regulatory requirements
engineering, design and environmental reviews
carrying the property and financing costs while waiting to build
Those upfront costs can add hundreds of thousands of dollars before those quartz countertops or upgraded flooring ever go in. And those costs are growing.
Long before the first wall goes up, builders are paying for land, permits, regulations and infrastructure—costs that can add thousands to the final price. Yet today’s market is creating an unexpected twist: Rising construction costs are pushing builders to find new ways to make homes more afford...