Building Wooden Houses

The Growing Industry of Wooden Home Construction in Europe

The industry of constructing homes from wood is rapidly expanding each year. Companies that build wooden homes assert that wood is the best material for a home. This material outshines traditional bricks in terms of practicality, price, and eco-friendliness.

Who Builds Wooden Homes?

The primary audience for these wooden countryside homes typically includes individuals with an income of around $8,000 and above. Despite these homes being located far from major cities, most buyers either permanently relocate there or use them as seasonal retreats. This audience comprises officials, successful businessmen, popular celebrities, or athletes.

Construction Methods for Log Homes

Various technologies are used in building these homes, including frame construction, the use of cylindrical logs, and hand-prepared logs. Among these, only 5% of customers prefer hand-prepared logs, while 60% opt for frame homes and 35% for cylindrical logs.

Undoubtedly, the most expensive of these technologies are hand-prepared logs. These logs can be massive, with diameters reaching up to 50 cm. The bark layer is manually removed from the logs. Hand-prepared logs are among the most costly and respected technologies. Building such a "cabin" per square meter would cost approximately the same as a brick house, around $1,000.

Advantages Over Brick Homes, Work Crews

Another advantage of wooden homes is the significantly faster construction compared to brick homes. The construction timeline depends on the technology and materials used. Using the "turnkey" technology takes between 4 to 6 months, while the conventional method takes two to three months. Currently, most customers opting for wooden homes prefer turnkey construction. However, there is a surplus of builders in the market who may not be the best. Erecting the frame without door and window openings is easy, but finishing the house poses additional challenges.

As a result, many customers looking to build their wooden homes seek workers who can handle all necessary tasks, from laying the foundation to all desired decorative work. Specific tasks, such as electrical wiring and plumbing, are often subcontracted. The cost of such work makes up to 30% of the total estimate. Well-equipped building crews may include interior designers and even produce custom furniture for the home or yard.

Pricing and Benefits of Wooden Homes

The profitability of wooden construction, according to experts, ranges from 40-70%, rising to 80-90% in particularly successful projects. Several factors influence the final house price, such as wood species, building area, log diameter, and workers' wages. The main wood species used are larch, pine, and fir, with pine offering the best price-to-quality ratio. As the log diameter for construction increases, so does the price, with logs measuring 200-220 mm in diameter being the preferred choice.

The overall cost increases by 5% if a square log section is chosen. Regarding pricing per area, the larger the area, the cheaper each square meter becomes.

Requirements for Establishing a Wooden Home Construction Company

If you desire to start a wooden home construction business, you must obtain the necessary registration and building license. Essential investments into such a venture would require $100,000, covering office rent, equipment purchase, wages, website creation, and advertising.

Advertising and Office Location

Experts suggest focusing on online advertising projects, as 70% of clients search for construction companies online. Billboards and posters are also effective investments. Constructing a showcase home for advertising purposes is a great idea. Nearly every customer wants to see what will be built for them. Building a wooden house both as a sample and as the headquarters for your company can be ideal.

As for the ideal office location, it should be easily accessible to all, preferably in the city center. However, some believe that clients will travel anywhere if your prices and quality meet their expectations.

Initial Capital and Necessary Staff for the Company

A successful company requires initial capital for operation. For instance, if you accept an order to build a turnkey home in March, the construction of the house frame will be completed by July. During this period, the prices of finishing materials for the house may rise. It is wise to pre-purchase all required materials for the order.

The licensing process can take months, during which time employee salaries must be paid. This entails significant costs. The staff structure of a construction company mainly consists of customer relations managers (around three individuals), an architect, an office manager to handle incoming calls, logistics and sales specialists.

Market Forecast

While brick homes are predicted to dominate the construction market (about 95% of all builds), experts estimate a bright future for wooden homes, with their popularity on the rise.

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