When creating your New Year’s resolution, you may not have considered adding a pole barn to your plans for 2024. With interest rates nearly double what they were just a few years ago, you may call me crazy for saying 2024 is the time to build a pole building.
In this article, we will go over the three reasons why now is the right time to build a post-frame building.
Why Should You Build a Pole Barn Now?
1)The Cost of Construction
Whether you build a pole barn with FBi Buildings or go with someone like Morton, the cost to construct your site will be similar.
The cost to construct a pole barn comes from:
- Site Prep with excavators
- Gravel
- Concrete Pole Barn Flooring
- Finishing costs of HVAC systems, Plumbing, & Electrical
Over the past several years, we saw a rise in pole barn commodity pricing. When COVID-19 hit, people stayed home and did repair and renovation projects and new construction projects. With the increase in supply demands, coupled with the lower interest rate, many commodities, such as lumber, skyrocketed.
2024 is the time to build. Prices have leveled out, and the demand to build is not what it was just a few years ago. With lower demand, you can lock in a price and have the pole barn of your dreams before the year ends.
2) Cost of Money
Regarding your post-frame construction project, the cost of financing a pole barn can become a major factor in pulling the trigger on building your project. Like many Americans, you may be holding off on building until the interest rates drop. This could also be true if you’re looking to build a new home. If you’re interested in a more cost-effective solution, you could also use this year to tackle interior finishing, such as insulation, steel liner, OSB, etc.
We also understand if you are hesitant to build a pole barn home in 2024. According to Forbes, Shelter inflation remained stubborn in November, up 6.5% from a year ago and 0.4% from October. Inventory shortages have propped up housing prices in 2023 despite the average interest rate on a 30-year fixed mortgage peaking at a 23-year high of over 8% in October.
But don’t let that discourage you. The likelihood of interest rates dropping in 2024 is good. Danielle Hale, chief economist at Realtor.com, told Forbes. “Mortgage rates could near 6.5% by the end of the year, a key factor in starting to provide affordability relief to homebuyers.”
While we try to build as efficiently as possible with our QLYFT building system, remember that building a pole barn doesn’t happen overnight. The site prep, permitting, and construction process often takes several months to a year (for large projects). This means that interest rates could be lower by the time you erect your building.
3) How the Cost of Construction and Cost of Money Go Hand in Hand.
As money costs decrease, the demand to build barndominiums and post-frame agriculture shops will increase. And with the increase in demand, prices for pole barns will increase.
While you might not think of winter as the time to build a pole building, NOW is the perfect time to start your project. You can lock in your price. As we saw in previous years, many will wait until the interest rates drop; by then, the materials could go back up in price. Plus, until March 1st, 2024, FBi Buildings is offering no money down or 0% financing.
While your cost of money may be high today, the cost of construction may be lower compared to a year from now. The cost of money can change. You can refinance or get into a different loan situation, but you can not change the initial investment price of the building project.
Lock In Your Pole Barn Price Now!
2024 is predicted to see interest rates at 6.5% by the end of the year. Historically, when interest rates drop, demand increases. And with increased demand, building materials, and overall pole barn construction prices increase.
Now is the time to lock in your post-frame building project price! When your project is complete, your construction loan could have a lower interest rate. That means you can expect to pay less than waiting until after the rates drop.
If you are ready to build a post-frame home or high-quality pole barn building, request a free quote to get started today!
Do you have more questions that aren’t covered in this article? If you need help designing and planning, please contact FBi Buildings at 800.552.2981 or click here to email us. If you’re ready for a price, click here to request a quote, and a member of our Customer Engagement Team will help you determine the next steps.