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Homebuilders Working Around High Material Cost

SPRINGFIELD, Mo. -- With spring and warmer weather right around the corner, homebuilders are hopeful for a fast start. Brett Godfrey and Chris Soliere says the slow housing market is bouncing back, but they are facing new challenges with their cost too.
SPRINGFIELD, Mo. -- With spring and warmer weather right around the corner, homebuilders are hopeful for a fast start.

KOLR10’s Brett Martin spoke with two home builders to see what challenges they are facing and how they plan to get around them.

Brett Godfrey and Chris Soliere says the slow housing market is bouncing back, but they are facing new challenges with their cost too.

"We were one of the last markets to experience the downturn and one of the last markets to experience the up tick," says Brett Godfrey.

He is a former president of the Home Builders Association of Greater Springfield and says they face a long list of challenges.

"Every year when the code books come out we have new things that we have to put in."

According to the Associated General Contractors of America, the price of products like cement, lumber and insulation is going up for nonresidential building.

Brett says he has seen it with new houses, too.

"Its like any other business, we have to send those on down the line to the end user, the consumer."

He showed us around one of the houses he is building to see first hand what drives the prices up.

"This is a 95.5% furnace, that’s over and above in our market."

Chris Soliere, the owner of Soul Renovation Solutions in Nixa and says he relies on set prices from his vendors.

"It has caused me to shop around a little more just for comparison purposes and trying to realize where I can get material for the best dollar."

He says the prices can go up or down in just days.

"It throws our estimates off in the middle of building, all of a sudden we have an 8% increase in something then that changes the bottom line," explains Chris.

Brett says since he started building, 12 years ago, the new guidelines have raised his costs almost 40%.

"Petroleum has probably been one of the biggest drivers of price increases."
 
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