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Influx of buyers, supply chain crunch put pressure on homebuilding industry – SiouxFalls.Business

May 20, 2021

Of the seven homes Vince McCormick is building this year, more than half will be from overseas buyers.

“It’s a whole different dynamic,” says McCormick, owner of smart homes.

“It’s funny to hear people say, ‘I think I’ll be okay with a two-story garage. I’ve had to walk six blocks to my car for the last 10 years of my life and pay for this parking lot. ‘”

Instead, they are paying for houses in Sioux Falls, in a market where prices are rising.

For homes like the McCormick-built homes, which start at $ 400,000, the average price per square meter has increased from about $ 255 to $ 280 this year.

“Some people have a trend well over $ 300,” he said.

“It’s your materials. Nobody takes any more money home. “

McCormick, who exhibited a home at the Parade of Homes event this weekend, has also noticed a trend toward building prefabricated houses with no basements.

The house in northeast Sioux Falls he built is over 3,000 square feet on one level.

It inspired him to show a layout “where people still feel like they’re not on top of each other or the room is one where everything is put together,” he said.

“People don’t carry everything with them.”

It’s a minimalist mindset, he said, especially for overseas buyers moving from much smaller homes on the coast.

In the house he has on the tour, which is in northeast Sioux Falls off Six Mile Road, there are separate zones for sleeping, working and entertaining.

Two types of offices are built into the house.

The design draws on a speakeasy inspiration from the 1920s.

The other is integrated into the laundry room.

He has also integrated a film room and a fitness room into the floor plan.

“You can still let the kids go and have their place,” he said.

Another challenge for builders this season: the supply chain is out of whack.

“Absolutely,” said Jarrod Smart, owner of Jarrod Smart Construction and chairman of the Parade of Homes event.

“We are waiting for doors from houses that we built six months ago. It’s crazy.”

McCormick has an upcoming closure and knows he “needs to bring the closet doors as soon as they’re in,” he said. “I never thought that would be the case.”

The Parade of Homes event, organized by the Home Builders Association of the Sioux Empire, offers the opportunity to view more than 40 new homes in various price ranges. It runs on Saturdays and Sundays from 1 p.m. to 5 p.m. Click here to learn more.

It is well worth taking the time to consider options, McCormick said.

“It feels like people are in a hurry,” he said. “What I’m suggesting to people is that there is land out there. The developers are working very, very hard to ensure additional properties for people. I don’t think we have any problems with being in a situation where there will be no country. “

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