Prescott’s custom home market is holding strong, though signs of moderation are emerging. While high interest rates have cooled some speculative construction, demand for well-built, energy-efficient custom homes remains steady. Clients relocating from California and the Northeast continue to drive local activity, seeking high-performance builds with long-term savings in mind. The good news: pricing is stabilizing, subcontractor availability is improving, and local inventory is growing—providing more opportunity for homeowners ready to build.

Residential Construction Materials Prices

After years of instability, materials pricing is becoming more predictable—critical for accurate budgets and timelines.

• Lumber: Now around $500/1,000 board feet, down from historic highs.
  (Sources: NAHB, Linesight)
• Steel: Prices dropped 8% this quarter, easing pressure on metal-framed components.
  (Source: MetalMiner)
• Paint: Up 3.5%, driven by ongoing resin and pigment constraints.
  (Source: BLS PPI, NAHB)
• Concrete: Saw a 2.1% increase tied to higher fuel and aggregate costs.
  (Source: BLS)
• Glass: Prices rose 1.8%, with domestic supply stabilizing.
  (Source: BLS PPI)
• Gypsum: Increased 2.9%, still driven by steady demand.
  (Source: BLS)
• Plastics: While up 6.2% year-over-year, prices appear to be stabilizing.
  (Source: FRED)

Land remains a major cost factor, and Prescott still offers strong value, especially when compared to similar Western markets. Large, buildable lots with views and privacy remain available.

Residential Construction Labor Costs

The national labor shortage persists, but local subcontractor availability appears to be improving. Matt Bohannon reports more flexibility in scheduling trades, a welcome shift after several years of chronic shortages. Wages remain elevated due to demand, but builders are seeing fewer budget overages and more accurate estimates on recent projects.

This local shift helps RES Contracting maintain reliable timelines and uphold our open-book budgeting promise.

The Economy

National economic indicators remain mixed. Mortgage rates hover near 6.8% (Freddie Mac and Bankrate), which has cooled some homebuyer activity—but not among custom clients focused on long-term efficiency and lifestyle. Inflation has eased, and while tariff discussions continue, they’ve had little tangible impact on RES builds.

In Prescott, the June 2025 median listing price sits at $766,000, down just 4.1% year-over-year. Inventory has increased, offering buyers more options. Custom home pricing ranges from $400 to $600 per square foot, with high-end projects climbing higher depending on scope and finishes. These figures position Prescott as a strong value play for clients seeking a long-term home with comfort, quality, and energy efficiency at the forefront.

While national builders navigate economic uncertainty, custom building in Prescott is showing stability. With pricing evening out and subcontractor schedules opening up, now may be one of the best times in recent years to plan a high-performance home.

Call our office today at 928-776-0301 to discuss your project, and stay tuned for updates from our brand-new office opening July 21st!