The US housing market consists of the construction, sale and resale of residential properties all across the country. In the second quarter of this year, reports have shown that there has been a decline in home building as well as the sale and resale because of the collapse in the subprime lending industry last year which was one of the factors that contributed to the current financial crisis.

This means that a lot of people have to foreclose their homes if they can’t pay the amortization. Those who have not yet lost their homes are trying to find a way to keep theirs. Individuals who are well of have to think twice before considering building a home so they don’t fall in the same situation as others are also experiencing.

Companies involved in the construction industry have to layoff some workers rather than keeping them on the payroll because they are just wasting money keeping them around when there is no work to be done.

But it is not as bad as you think. There are advantages when there is a decline in home building. The price of materials and cost of labor are much cheaper so you can do a lot with your hard earned money. Since contractors need projects to survive, you will be able to find one very easily and also get a good price.

When you hire a contractor, you should know that your home will be built at a slower pace. This is not to stiff more money from you but to make sure that it is done right. Surely, you don’t want to stay in your new home and experience some problems less than 6 months after moving in right?

One way to make sure it is done just the way you want it is that the contractor of your choice will be able to hire only the best to work on your home.

The only catch to build your dream home is that you must have money stored somewhere since you will have a hard time lending this money right now from the bank.

If you don’t have that much cash on hand to build a house, another option will be to buy one because there are a lot of foreclosed homes right now and banks would rather sell it than just keep it with them.

Just how bad is the decline in home building? A report released by the US Commerce Department reveals that in August, there was 6.2% decline so that existing built units could be sold. This is their way to restore stability between supply and demand but it is going to take more than that to change the current situation.

Some stronger remedy is needed and maybe the $700 billion bailout plan could be the answer. Will it work? Only time will tell but a lot of people hope that it does so the economy will be in good shape and we can see a construction boom in the foreseeable future.

So what should we do until that happens? Pray and just hope for the best. If things work out like what most analysts predict, we will see a recovery by the 2nd half of 2009 which means thee will be no longer a decline in home building.

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Let’s say you have the money and the resources to build a home. Within a few months, it is completed. Is it happily ever after? The answer is no because there will be a few other challenges ahead even where is no decline in home building.

When you have built your home, one thing you have to deal with is the property taxes and this could range from $1,000 to $10,000 depending on where you live. Take note that this does not yet include mortgage expenses if you have not paid yet for the house in full. The only consolation is that you pay for this on a fixed term.

While most home values go up after how many years, in some cases like during the financial crisis, its value could go down. Some analyst said that the average home value has only kept up with inflation over the last few decades so you don’t really gain that much.

If you are employed and you are told that you have to relocate, it will be hard to move right away since it takes time to sell a house.

Should there be any problems with the house, you don’t call your landlord since there is none. You will have to find a specialist to figure out what is wrong in order to fix it.

But these things should not deter you from considering building your own home even during a time when home building is on the decline. Why? Because building a home is a one time investment unlike rent where you pay a fixed amount per month and this could up the following year.

What is even better is that you live in a dwelling according to your specifications. If you don’t like it or you want to add something, you can make changes and no one will oppose your decision.

If you signed a warranty with your contractor, any problems will be taken cared of by them without any additional charges.

Since your house is new, it is more energy efficient compared to older homes thanks to new technology and you are compliant with new environmental regulations.

A decline in home building has not stopped other people from having their own house constructed. In fact, most people you ask will probably tell you that they prefer to live in their own home rather than paying rent. With that, you have a land title under your own name and no one can take that away from you unless you decide to sell and move somewhere else.

This will enable you to establish good credit with the bank when you need to apply for a loan. That may not happen right now because of the financial crisis but when it is over, you will soon realize that this was very handy.

You will also get tax cuts which will never happen if you are renting. You will be happy about this when it is time once again to pay your income tax for both federal and state since these are usually fully deductible.

There is no better time to own a home or face its challenges than during a decline in home building because both labor and materials are cheap. If you have the money to pay for it, you shouldn’t have a problem paying for taxes and mortgage.

The financial crisis is affecting everyone. People are losing their jobs and some have to foreclose their homes. As a result, there is a decline in home building making some doubt that now is now the right time to build a home.

But what if there was no financial crisis? What if you can borrow money from the bank? What if you have the cash on hand? If there were no problems, then yes why not build your dream home.

To help you along, this is what you have to do.

First, get in touch with the local builders that have constructed houses similar to the size, quality and features that you want. By talking to them, you get a straight answer as to how much it is going to cost for the entire project plus what materials they will use.

Since its been months or even a few years that these homes were built, you have to expect that it is going to cost more now to construct something similar. The rooms which will be the most expensive to make will be the bathroom and kitchen. The number of windows and their size is another factor as well as the vaulted ceilings and high roof pitches.

You will also have to include inflation because building a home increase from 3% to 6% annually. With this information, only look at homes that were built within the last 6 months.

Don’t forget to put a 10% additional allowance to your budget when you make your estimate because plans change and in most cases, you and you contract will encounter unforeseen circumstances. Naturally you have to deal with the situation otherwise there will be delays when everything will be finished.

Believe it not, the cost per square foot is higher for a small home than a big one. Why? Because the cost of items is spread over and a two story home if that is what you want has a smaller roof and foundation. The same goes for plumbing and ventilation.

Another thing that could reduce cost is the shape of the home. Houses that are shaped like a rectangle, square or dome shaped are more affordable to build since there are not that many angles or corners which increases the amount of labor and the materials that will be needed.

It will be much easier to select the final blueprints, which is the basis of the project once you have estimated the construction expenses.

As much as possible, work with even numbers because this reduces wasted materials. The ideal home to make should be not less than 32 feet deep otherwise your roof trusses will have to be custom made which will cost more.

If you had this property for a long time, then chances are the neighborhood around you is already well developed. You don’t have to haul a lot of dirt, do grading, clear trees or blast through large rocks if your property happens to be somewhat secluded.

No one in his right mind will construct a house when there is a decline in home building due to the financial crisis. You just have to keep these tips in mind when the economy does improve so you will already have an idea how much money you need to build it.