Now is the Time to Start a Design Project
In today's economic and political climate, many people may think twice about embarking on a new residential or commercial design project. High interest rates, rising building costs, and an uncertain political landscape can all create hesitation and seem like daunting obstacles. However, despite these challenges, there are good reasons to begin planning and designing your home or business starting now.
Architectural design takes time and is the backbone to any project. In the grand scheme of a project, the cost of architectural planning and design is relatively small, but the benefits are extraordinary. By starting now, you can put yourself into an advantageous position and be ready to build when the time is right for you.
Understand What Is in Your Control and What Is Not
What Is Not in Your Control
When considering a major project like building a home or business, it's essential to distinguish between what you can and cannot control. Certain factors, such as the economy, politics, and natural events, are beyond our influence.
Economy: Economic fluctuations can impact material costs, and overall market conditions. Construction costs have increased significantly since the start of the global pandemic and interest rates are higher than they’ve been in over twenty years. While these are significant considerations, they are largely out of individual control.
Politics: The U.S. is experiencing a highly turbulent presidential election. Political decisions and policies can affect regulations, taxes, and incentives. While these changes can create uncertainty in the market, they are not something individuals can easily predict or influence.
Nature/Environment: Natural events, such as storms, fires, and other environmental factors, can also impact building projects. These occurrences are unpredictable and beyond human
What Is in Your Control
On the other hand, architectural planning and design are entirely within your control. Focusing on this makes a lot of sense and can help you move forward in a confident way.
Dreams & Desires: Your vision for your home or business is unique and personal. It is influenced by your values, lifestyle, needs, aspirations, financial considerations, and the future you envision for your family. Only you can determine what you want and need in your new space. Documenting these ideas is a valuable step that can be done at any time, costs very little, and is crucial when starting an architectural project.
Planning: While external factors may seem overwhelming, taking control of the planning process can empower you to make informed decisions. Engaging with an architect early allows for thoughtful planning and design, ensuring that your project reflects your vision and meets your needs.
Perspective: Imagine your overall project budget as buckets of money. The cost of architecture is just one bucket among others like land acquisition, site work, construction, and financing. Investing in good planning and design is a relatively small cost compared to the overall project and it can often save money in other areas by avoiding costly mistakes and changes later on.
Architecture serves as the foundation for all these expenditures, and its cost is reasonably minor compared to the overall budget. Despite this, it's often one of the most overlooked aspects in creating a unique built environment. By taking control of the planning process early on, you can harness the power of proactive decision-making, leading to a more efficient and successful project.
Benefits of Early Planning and Design
Let's explore the benefits of early planning and design and how they can set the foundation for your project.
The Common Tendency Is to Wait
Many people are natural procrastinators, often delaying big decisions until the last minute. It's easy to put off planning, especially when it seems like there are plenty of reasons to wait, such as uncertain market conditions or personal circumstances. It’s human nature to put things off.
There is a cost to waiting too long, and it can lead to rushed decisions and missed opportunities. For example, some clients who delay their projects end up paying significantly more due to last-minute changes, expedited timelines, or lost opportunities to secure better financing or builders.
It Can Take About 1-2 Years to Properly Plan and Design
The most successful people tend to start early and have a plan. In turn, the most successful projects are those that have been carefully thought out from the beginning, which allows for more thoughtful consideration of design options and potential issues.
By starting planning now you can be ready to pull the trigger when you want. You position yourself to take advantage of favorable conditions as they do arise. Whether it's securing financing or choosing the builder you want, being prepared allows you to act quickly.
Every year we get calls from clients who get together with their families over the holidays and start talking about a big project, like a generational compound or business venture. They want to start construction in the spring and are unaware of how much time it actually takes to not only plan and design, but also to secure a builder and get on their schedule.
Having more time to plan allows for thorough customization and tailored designs. Early planning enables you to explore different design options and tailor the project to your exact needs and desires. This level of customization is often not possible when timelines are tight.
In the Scheme of Life, Designing a Home or Business Is a Big Deal
Investing time in planning and designing a space that meets your needs is a significant undertaking.
Consider that the planning and design phase of a project may take up about 2.5% of your life. This is a small investment of time in the grand scheme of things, especially for something as significant as a home or business.
Starting early not only reduces stress but also increases the likelihood of a successful outcome. It's a decision you are unlikely to regret.
Financial Implications
Building Costs Over Time
Understanding the trends in building costs can help inform your decision-making.
Historically, building costs have generally trended upward. Factors like inflation, increased demand, and material shortages contribute to this trend.
Building costs tend to rise over time and rarely decrease significantly. While there may be temporary dips in prices, the overall trend has been upward. Delaying your project now in hopes of lower costs may not be a wise financial strategy.
Interest Rates and Financial Considerations
The current financial environment plays a crucial role in project planning.
While interest rates may be higher now than they were a few years ago, they are still relatively low compared to historical averages. This can make financing a project more affordable than it may seem.
Data from Freddie Mac’s Primary Mortgage Market Survey
Starting your project now allows you to lock in current rates and avoid potential future increases. It also provides the opportunity to budget and plan for the long term.
Builders Are in Lower Demand
The availability of builders can significantly impact your project timeline and costs.
Currently, the demand for builders is lower than it has been since the pandemic began, providing an opportunity to secure skilled professionals who may not be as readily available in a booming market.
With less competition for builders' services, you may receive more competitive bids, potentially lowering your overall project costs.
Conclusion
Despite concerns about higher interest rates, building costs, and the uncertain political climate, now is an advantageous time to hire an architect and start planning your home or business. By understanding what is in your control, taking advantage of the benefits of early planning, and considering the financial implications, you can set your project up for success.
Whether you're planning for retirement, creating a legacy estate or business, preparing for a young family, or starting a new venture, now is the time to take the first step in your building journey. Consult with an architect to explore your options and begin turning your dreams into reality.
If you have a project you’ve been thinking about and not sure what to do next, I’m happy to talk about how we might help.
Todd Smith, Founding Partner & Principal ArchitectSyndicate SmithContact