Pros to building during a recession

• The great part about building during a recession is that prices will generally fall because business isn't booming. The price of labor is one thing that usually decreases. Contractors or builders will work for a cheaper price because they just need the work and they're willing to make deals


• The cost of materials will generally go down some also. You may not see a big drop in price, but you will see some things that are definitely cheaper during a recession (although they might not seem cheaper because there is less money to go around).


• Many companies are willing to offer cash rebates, free upgrades, or extensions which can normally cost tens of thousands of dollars. They're willing to do it however to get your business. Most people that build in a recession get a lot of extra perks.


• If you have good credit you should be able to qualify for a really good loan with great interest rates. This can be really helpful in getting you into a home with an affordable mortgage payment that you wouldn't have been able to get into if rates were higher.

Cons to building during a recession

• One of the biggest cons to building a home during a recession is that the home might depreciate. No one ever knows how long a recession will last, or if it will get worse and go into a depression. If for some reason you have to move, you will most likely have to take a big hit in how much you can sell it for. Most people who try to sell a new home during a recession end up owing more than what they home is worth.


• Desperate times make for desperate people. When people are in need of money, you may be "taken" for what you have and left with an unfinished home. It's a sad situation, but sometimes contractors or sub-contractors will just take the money you've already paid them and leave the job.

Building a new home takes time, effort, and money, so building one during a recession may or may not be the right thing for you to do. If you're certain that you won't be moving any time soon after it's been built then it might be worth it to you. You can definitely get some extra things for your home, and labor is cheaper so it just might be worth it. Now that you know some of the pros and cons you can make your own mind up.