Why Waiting Costs More: The Rising Price of Materials and Labor in California’s Next 24 Months
- client-mhb
- Oct 23
- 3 min read
The Clock Is Ticking on California’s Rebuilds
If you're a homeowner in Malibu, Pacific Palisades, or anywhere along the California coast, delaying your rebuild may feel like you’re buying time. In reality, you're paying for it, literally. Rising construction costs in California are being driven by two major forces: ongoing material price increases and a growing skilled labor shortage.
Experts forecast that these pressures will continue to escalate over the next 24 months, making the cost to rebuild your home in 2026 significantly higher than in 2024. Every month of delay adds compounding financial risk.
California Construction Costs Are Rising Fast, Here’s Why
Rebuilding in Malibu, Pacific Palisades, and other high-demand areas comes with a premium due to:
Strict local zoning and permitting rules
Luxury-grade material requirements
Labor scarcity in skilled trades
National and global supply chain instability continues to impact prices. Core materials such as lumber, steel, and concrete remain well above pre-pandemic levels.
According to the National Association of Home Builders (NAHB), construction costs accounted for over 64% of the average new home price in 2024, up from 60.8% in 2022 — highlighting the ongoing inflationary pressure in the industry.
Regional builders in Southern California estimate that delays in residential construction projects can lead to 15% to 25% higher total costs — equating to tens of thousands of dollars more on custom rebuilds in areas like Malibu or Pacific Palisades.
The Real Cost of Delaying Your Rebuild
Delaying your rebuild introduces serious compounding costs:
1. Construction Delays in California
The longer you wait, the longer it takes to find reliable builders. High-demand crews book early, pushing timelines back 6 to 12 months or more.
2. Material Price Escalation Clauses
Many contracts now include price escalation clauses. This means a delay today locks you into even higher material costs later.
3. Labor Shortages in Homebuilding
California’s skilled labor pool is shrinking. Builders who start now secure top-tier tradespeople. Wait too long, and you're left with less-experienced subcontractors at a higher rate.
4. Malibu-Specific Rebuild Costs
In high-value areas like Malibu and the Palisades, every delay amplifies the premium. Each month can cost you $5,000 to $10,000 in added expenses.
How to Choose the Right Builder: Trust, Value Engineering,
and Results
It’s not just about finding a builder. It’s about choosing the right builder, one with:
A proven record of on-time, on-budget delivery
The ability to value-engineer without sacrificing quality
Solid references who speak to how challenges were handled, not just the final result
A builder who plans for the unforeseen and helps you avoid unnecessary change orders is worth their weight in steel and lumber.
Leadership and Trust You Can Build On
Rick Caruso, founder of SteadFast LA, is leading by example, acting as a block captain and working to rebuild stronger, smarter communities. That same local commitment is what drives Monument Home Builders.
For over 40 years, Monument has built and remodeled homes across Malibu, Pacific Palisades, and the Los Angeles coastline, with deep relationships in the neighborhoods they serve. You’re not hiring a crew, you’re partnering with neighbors who care.
What Homeowners Are Saying About Monument
“Bruce and his crew handled every obstacle and delay with great professionalism and a positive attitude. The end results were and still are superb.” - S. Hitter, 2022
“Bruce has built or remodeled three of our homes. His honesty, patience, vision and efficiency make every project a seamless experience.” - J. and E. Lorin, 2005
“I’ve worked with Bruce Grant for over 20 years. His integrity and quality of work have always been consistent.” - Dennis Tito, 1998
These real reviews validate what price quotes and timelines can’t: Monument delivers even when the unexpected happens.
Rebuild Smarter, Start Today
There’s no benefit to waiting. Rising construction costs in California are accelerating. Starting now helps you:
Lock in today’s material and labor costs
Secure experienced tradespeople
Avoid costly contract escalation clauses
Move back into your home sooner
Ready to Rebuild? We’re Ready to Help
Don’t wait for costs to rise further. Contact Monument Home Builders today to start your smart rebuild.
CONTACT US: (310) 774-2845
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