How Much Do Log Homes Cost?

More than any statement from potential customers in the past 39 years of business, the above statement dominates all initial conversation. In this post and others I will do my best to educate and inform on this and other topics of interest in handcrafted log home construction.

The simple answer is more than conventionally framed structures. How much more, well that gets a bit more complicated. At the low end 25% at the high end 100%. To further our analysis lets look at the reasons why.

First and foremost the handcrafted log home is generally a custom designed, custom built structure. This feature gives a visceral affinity to logs but also drives cost. Many times in showing customers our homes they reach out and touch the surface of the wood.   How many times can you remember reaching out to touch a dry walled surface?

Raw materials are expensive. Premium house logs used in handcrafted construction are the best of the best as far as logs go and there cost is reflected as such. They need to be straight, of minimal grain slope and have minimal taper. Handcrafted log home suppliers can expect to pay many times more than a mill pays for its raw materials. Generally speaking good quality and more expensive finish materials follow suit in finishing the home out. From wood and ceramic tiled floors to solid surface counter tops, wood doors and quality windows; most of the time these areas feature an upgraded type of finish. It’s difficult to put a cheap vinyl window, flooring or light fixture into a well done log structure and not have it look out of place.

The labor to construct not only the log shell portion but to finish out the structure is expensive. Log shell costs reflect the quality of and quantity of labor put into the structure. The quality of labor and subsequent quality of structure is reflected in experience levels of those doing the joinery. A higher experience requires a higher cost. Quantity of labor is reflected in what exactly is being provided by a log home manufacture. This gets complicated and will be explored in further posts. In addition to wages, labor costs are subject to payroll liabilities (Social security, Medicare, Medicaid, State Unemployment, Federal Unemployment, Workers Compensation Accident and Disability Insurance, and General Liability Insurances). All of which drive the cost of labor on a project. For a labor intensive project like handcrafted log home manufacturing this is the biggest cost input. On top of this log manufacturers maintain yards, expensive equipment and buildings that are factored into costs.

Subsequently labor in all building trades required to finish a log home are subject to the same requirements for employees. Furthermore finishing to uneven surfaces and dealing with settlement of logs require more time and in some ways skill in all trades and disciplines. Therefore when a potential customer wants to save on there project, the first thing I ask is how much of the project can they do. Labor and subsequent payroll liabilities can easily consume 60-70% of a turn key fully contracted project.

Filling out a cost itemization form(subject of future post) is an objective way to estimate costs. For those really wanting to do a deep dive into what is really involved in budgeting and the steps required for a successful project, filling out a form like this is invaluable. If you can do it yourself great, if you cannot pay some one who can. Unless you have an unlimited budget (I have never seen one in over 200 structures), you will benefit from the experience.