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Why Are Sedona New Construction Costs Skyrocketing?

Sheri Sperry January 19, 2018

Sedona New Construction Rising At Alarming Rate!

Sedona New construction Rimstone West Sedona

Lumber Costs Rising

SEDONA NEW CONSTRUCTION – I recently had a conversation with a very prominent builder in Sedona who puts out a quality home product. In the course of our conversation, he told me that he was very concerned with the cost of lumber and the availability.  His costs have gone up 25% since the weather or hurricane disasters that we recently experienced.  In addition the recent fires in California will be adding to the lack of inventory and rising cost. This has not even been figured in yet!

After doing additional research, I found that builderonline.com referenced an article from Calculated Rick Finance & Economics that lumber random lengths are up 25% from a year ago. CME, which is a Futures Exchange, states that lumber futures are up 45% year-over-year. 

New Custom Homes Are Still Available In Sedona Arizona

In the Sedona area, lumber costs are affecting our builders on new home construction. There is a small amount of land and lots available in Sedona proper. This limits home construction to one build at a time. Generally speaking, with all the costs involved, a resale home is a better deal. You just can’t build a home for what a resale home will cost.

New Development Construction Is Flourishing In Sedona’s Outlying Communities

But there are other areas such as Cottonwood, Cornville and Clarkdale that have seen large areas being developed by one or more builders. These new homes can be considered semi-custom builds and are becoming more attractive to those who just can’t find the resale home that fits their needs. 

Buyers Need To Consider

Typical lumber costs are between 60%-70% of the home building costs. Labor costs the other 30% to 40% (costowl.com). With building costs continuing to rise, buyers need to consider the pluses and minuses of buying new. Normally, Lumber costs vary at different times of the year, but these disasters have stressed the lumber market.

Pluses For Purchasing New

  • Did I mention the home is brand new!
  • If bought early, you pick out the finishes.
  • You may be able to custom design it – bump out a wall, add an extra garage, etc.
  • Modern open floor plans – some have 2 master suites.
  • You get a builder’s warranty – remember it’s brand new!
  • All appliances, HVAC, plumbing, electrical, roof, etc. is all brand new!

Pluses For Purchasing A Resale

  • You can negotiate price much easier than on new homes. Seller may be motivated.
  • Generally, you get more for the money.
  • Mature landscape and possible hard-scape is already done.
  • You know exactly what you are getting – it is already complete!
  • Neighborhood is established.
  • You may get quality amenities that are absorbed in the negotiation.

Also check out my blog on steel construction:

“Why You Should Select Steel Instead Of Wood For Your new Home Construction”

Steel Construction in Sedona


Always remember that as a buyer considering new home construction, you should be represented by a buyer real estate agent. Seller agents are there to represent the builder/seller and protect those interests.  As your buyer agent, I will be there to represent your interests and negotiate on your behalf. Give me a call to see how I can help you with your real estate needs.

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As a Coldwell Banker Sedona Arizona REALTOR®, my primary goal is to help my customers obtain their dreams, as well as satisfy their financial goals and objectives through real estate. From the moment I am contacted, you will observe my seasoned ability to provide you with “World Class Service” and that “personal touch” while utilizing a complete package of technology options that are of the utmost importance and so critical in today’s market.

I will tailor real solutions to fit your specific needs. – Sheri Sperry –


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