Building Smarter: How AI Is Changing Construction in 2025

At Xtreme Builders LLC, we’ve seen firsthand how quickly construction has changed in just the last few years. From new materials to advanced software, our industry is evolving at a pace that would have been hard to imagine a generation ago. One of the biggest drivers of this change in 2025 is artificial intelligence (AI).

AI isn’t just a flashy word in tech headlines anymore—it’s here on the jobsite, in our planning rooms, and even in the way we track costs and safety. Having worked in residential building for years, I’ve watched how the right tools can save thousands of dollars and weeks of work. AI takes that principle to another level, giving us sharper insights, better project control, and even a safer environment for our crews.


Why AI Matters to Builders Like Us

The construction industry has always been about precision. A quarter-inch off in framing might not sound like much, but multiply that across a whole project and you’re facing rework, delays, and lost dollars. AI thrives in that space—it helps us catch errors before they become costly problems.

  • Market Growth: Reports show the AI construction market is projected to grow from $4.86 billion in 2025 to over $22 billion by 2032, with cost savings of 10–15% possible across projects. For a builder, that isn’t theory—that’s the difference between a profitable project and one that breaks even.
  • Safety: Companies nationwide are already using AI to monitor worksites. Real-time alerts for hazards like improper scaffolding or lack of harnesses can cut down on accidents. At Xtreme Builders, we don’t replace human supervision, but AI gives us another set of eyes—ones that don’t blink.
  • Scheduling: Delays kill momentum. AI tools can analyze weather, supply chains, and labor data to predict risks before they derail a timeline. As a contractor juggling multiple jobs, I see the value in technology that gives us a heads-up instead of a “too late.”

How We’re Using AI in Our Work

At Xtreme Builders, our projects range from new home builds to remodels and insurance repair jobs. Here’s how AI touches our day-to-day operations:

  • Estimating & Planning: We’ve tested AI-powered estimating tools that help us build faster, more accurate quotes. Instead of flipping through spreadsheets, we can pull data from past projects to predict labor hours and material quantities. It doesn’t replace our experience—but it makes our experience sharper.
  • Project Tracking: On the jobsite, AI integrations with cameras and drones let us compare what’s built today against the plan. That’s a game changer when we’re managing multiple sites at once.
  • Sustainability: Clients are asking for greener builds. AI helps us reduce waste by suggesting smarter material use and optimizing energy efficiency in homes. For example, we’re now seeing tools that can recommend adjustments in HVAC design or insulation choices based on climate and house layout.

The Benefits for Homeowners

It’s not just contractors who win with AI. Homeowners benefit too:

  • Better Pricing: With fewer overruns, costs stay closer to the original estimate.
  • Faster Builds: Smarter scheduling means projects move quicker without sacrificing quality.
  • Safer Jobsites: Less downtime and fewer accidents help keep everyone on track.
  • Higher Quality Homes: From energy efficiency to long-term maintenance, AI helps us build homes that last.

The Challenges We See

As with any new technology, there are hurdles:

  • Data quality: AI is only as good as the data it pulls from. Construction is messy—weather delays, unique designs, and human judgment all play a role.
  • Costs: Adopting new tools isn’t cheap. Smaller builders often hesitate because the return isn’t immediate.
  • Learning curve: Crews need time to adapt. As someone who trains workers regularly, I know patience and clear guidance are key.

But here’s the truth: builders who ignore AI risk falling behind. Those who lean in—carefully and strategically—stand to grow stronger.


Where We’re Headed

Looking ahead, I see generative design becoming a major asset. Imagine telling a program the square footage, style, and budget for a home—and getting multiple design options instantly. That doesn’t replace an architect or a builder’s intuition, but it speeds up the conversation and puts clients in the driver’s seat earlier.

I also believe AI will reshape insurance repair work, one of our current focuses. Faster damage assessment, smarter cost analysis, and automated reporting could make claims smoother for both contractors and homeowners.


Final Word from Xtreme Builders

At Xtreme Builders, our philosophy is simple: use every tool available to build better homes, serve our clients, and care for our crews. AI is one of those tools. It’s not perfect, but it’s powerful. And when combined with craftsmanship, integrity, and decades of experience passed down through generations, it helps us continue doing what we do best—building with purpose.

Construction has always been about more than wood, concrete, and nails. It’s about vision, trust, and execution. AI may be new, but in the hands of a builder who knows what matters, it becomes another way to make dreams a reality.


Sources

🏠 Why U.S. Home Prices Aren’t Falling in 2025—Despite Rising Inventory

As of mid-2025, many prospective homebuyers are puzzled: with a noticeable increase in housing inventory, why aren’t home prices dropping significantly? While the seller-to-buyer ratio offers a snapshot of market sentiment, it doesn’t capture the full complexity of the housing market 1. Let’s explore the underlying factors keeping prices elevated.

📊 The Seller-to-Buyer Ratio: A Limited Indicator

The seller-to-buyer ratio provides a general sense of market balance. A higher ratio suggests a buyer’s market, while a lower ratio indicates a seller’s market. However, this metric doesn’t account for crucial elements like:

  • Price Sensitivity: An abundance of buyers doesn’t guarantee sales if homes are overpriced.
  • Property Types: Demand varies across different housing segments; for instance, entry-level homes may see more interest than luxury properties.
  • Construction Costs: Rising costs can deter new developments, affecting supply.

Therefore, while informative, the seller-to-buyer ratio shouldn’t be the sole measure of market health.

🧱 Construction Costs: A Major Contributor

Construction expenses have surged, making it costlier to build new homes. In 2024, construction costs accounted for approximately 64.4% of a single-family home’s price—the highest since the 1990s. The average construction cost reached $428,215, or $162 per square foot 2. Factors driving these costs include 3:

  • Material Prices: Tariffs and supply chain disruptions have increased prices for essential materials like steel and aluminum .
  • Labor Shortages: The industry faces a deficit of skilled workers, leading to higher wages and project delays 4 5.

These rising costs discourage new construction, limiting housing supply and sustaining high prices 6.

🏗️ Supply Constraints Amid Rising Demand

Despite a slowdown in construction, demand for housing remains robust. In April 2025, U.S. construction spending fell by 0.4%, with residential construction dropping by 0.9% . High borrowing costs and an oversupply of unsold homes have contributed to this decline 7. However, the existing housing inventory is still below historical averages, and new home listings have surged to the highest level in five years, offering buyers more options 8.

💸 Mortgage Rates and Affordability

Mortgage rates have remained elevated, averaging 6.89% for a 30-year fixed-rate loan 9. These higher rates have strained affordability, particularly for first-time buyers. While some regions have seen slight price declines, overall home prices have continued to rise, albeit at a slower pace. In March 2025, the S&P CoreLogic Case-Shiller national home price index reported a 0.3% drop from February, but prices were still 3.4% higher than a year ago 10.

🏘️ Regional Variations and Market Outlook

Real estate markets vary significantly across regions 11. For example:

  • Sun Belt States: Areas like Texas, Florida, and Arizona are experiencing strong housing activity due to robust construction and offerings for first-time buyers .
  • Northeast: Supply constraints and high land costs have limited new construction, keeping prices elevated.

Looking ahead, J.P. Morgan Research anticipates a modest 3% increase in home prices for 2025, with mortgage rates expected to ease slightly to 6.7% by year-end 12.

🧠 Conclusion

While the seller-to-buyer ratio provides a glimpse into market dynamics, it’s insufficient to fully understand the complexities of the housing market. Rising construction costs, supply constraints, and high mortgage rates are significant factors keeping home prices from falling. As these challenges persist, it’s crucial for buyers, sellers, and policymakers to consider a broader range of indicators when assessing market conditions.

Recent Developments in the Housing Market

The 5 Most Common Mistakes People Make When Starting a Home Build (and How to Avoid Them)

By Tyler Gallahar | Xtreme Builders LLC

Building a home is more than just a project — it’s a personal investment in your future. At Xtreme Builders, I’ve seen time and again how a little preparation and the right mindset can turn an overwhelming experience into one you’ll truly enjoy. Whether you’re building your forever home or your first step into homeownership, here are five of the most common mistakes I’ve seen people make when getting started — and how you can sidestep them with confidence.


1. Not Having a Clear Budget (and a Little Breathing Room)

Some people walk into the home-building process with only a ballpark number in mind — but without a detailed budget, it’s easy to end up stretched too thin.

For example, imagine someone planning to spend $300,000 on their build, but forgetting to account for things like excavation, driveway grading, utility hookup fees, or even appliance upgrades. Suddenly, they’re over budget before framing begins.

“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost…”
— Luke 14:28

Builder Tip: Have a complete budget breakdown from the beginning, including a 10–15% contingency fund. We help clients line-item every part of their build so they’re never caught off guard.


2. Rushing the Design Process

A beautiful house isn’t always a livable one — and when you rush through the design phase, you risk missing the small details that make a home functional.

Take a hypothetical family that quickly approves their floor plan without walking through how they’ll live in it day-to-day. Later, they realize their laundry room is too far from the bedrooms, or that the open-concept living area offers no privacy when guests come over.

Builder Tip: We use advanced design software to help you virtually walk through your home before a single nail is driven. It’s better to take a few extra days now than regret a layout for years.


3. Choosing the Cheapest Bid Just to Save Money

On paper, a low bid looks great — but behind the scenes, it might come with subpar materials, poor communication, or costly change orders down the road.

Imagine someone comparing two builders. One offers a fair price with detailed scope. The other is 20% cheaper — but doesn’t include grading, cleanup, or permit costs. In the end, that “cheap” build ends up more expensive.

“A good name is more desirable than great riches; to be esteemed is better than silver or gold.”
— Proverbs 22:1

Builder Tip: We believe in honest estimates, not bait-and-switch tactics. You deserve to know exactly what you’re paying for — and why.


4. Having Unrealistic Expectations About the Timeline

TV shows and social media can make it seem like a home goes from dirt to dream in 60 days. In reality, timelines depend on weather, inspections, material availability, and more.

Picture a couple planning to move in by a specific holiday. But then it rains for two weeks straight, delaying the foundation. Electrical inspections get rescheduled. Materials are backordered. Now their timeline is off and frustration sets in.

Builder Tip: We create realistic timelines with room for the unexpected, keeping you informed every step of the way. When you plan for flexibility, the process stays positive.


5. Trying to Manage the Project Without a Builder

Some people think they can manage trades themselves to save money, but without experience, it quickly becomes overwhelming. Missed permits, scheduling delays, or failed inspections can cost more than hiring a pro in the first place.

Imagine someone trying to line up framing, plumbing, HVAC, and electrical on their own — while working full-time. Stress builds. Mistakes happen. And deadlines get missed. Because of the delays the project ends up costing more money than expected.

Builder Tip: At Xtreme Builders, we coordinate every part of your project from start to finish. That means you get peace of mind and a clear point of contact from day one.


Final Thoughts from Tyler:

Building your home should be a rewarding experience — not a stressful one. I believe in using wisdom, communication, and craftsmanship to guide every project. We don’t just build houses. We want to build trust, structure, and peace of mind.

“By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures.”
— Proverbs 24:3-4

If you’re ready to build with a team that puts your needs — and your faith — first, we’d be honored to help you get started. Let’s build something lasting.

Renovation vs. New Construction: Which is Right for You?

“Commit thy works unto the Lord, and thy thoughts shall be established.” Proverbs 16:3 (KJV)

At Xtreme Builders LLC, we understand that deciding between renovating your current home or embarking on a new construction journey is no small feat. It’s a choice that can shape the future of your living space and impact your daily life. To help you navigate this important decision, we’ve broken down the pros and cons of each option, so you can make an informed choice that aligns with your vision, budget, and timeline.

Renovation: Pros and Cons

Let’s start with renovations. Imagine breathing new life into a beloved space, preserving its charm while enhancing its functionality. Renovations can be incredibly cost-effective, especially if you’re working with a smaller area or making targeted updates. They allow you to retain the sentimental value of your home, keeping the features you love while modernizing your living environment. Plus, renovations often come with a quicker turnaround, meaning you’ll be able to enjoy your refreshed space sooner.

However, renovations come with their own set of challenges. Older homes may harbor hidden surprises—like structural issues—that could lead to unexpected costs and delays. Design flexibility can also be limited by the existing layout, which might make it challenging to achieve your dream vision. Despite these challenges, many find that the benefits of renovation far outweigh the cons, especially when preserving cherished aspects of their home.

New Construction: Pros and Cons

On the other hand, new construction offers a blank canvas, allowing you to create a home that perfectly matches your vision. With a new build, you have complete control over every detail, from layout to finishes, ensuring that every element is tailored to your preferences. The process starts fresh, reducing the risk of hidden issues and surprises. Modern construction techniques also mean you can enjoy a more energy-efficient home, which can lead to significant long-term savings on utilities.

Yet, new construction is not without its challenges. The initial investment is typically higher, and the process can take longer, from securing permits to completing construction. You might also face a maze of permits and inspections, adding to the complexity of the project. Despite these hurdles, the ability to design your perfect home from the ground up can be a compelling advantage for many.

Factors to Consider

As you weigh your options, consider what matters most to you. What’s your budget? Does it align better with a renovation or a new build? Think about your timeline—how soon do you want to be living in your updated or new space? Reflect on your long-term goals, including potential resale value and future plans. And don’t forget to factor in your emotional attachment to your current home and how it might influence your decision.

How We Help Clients Decide

At Xtreme Builders LLC, we’re here to help you every step of the way. Our process starts with a thorough consultation to understand your needs and preferences. We conduct feasibility studies to explore the potential of both renovation and new construction for your specific situation. Our detailed cost-benefit analysis will help you compare the advantages and challenges of each option. And, we’ll work closely with you to visualize your ideal design, whether that means updating your existing space or starting from scratch.

Conclusion

Deciding between renovation and new construction is a deeply personal choice that depends on your unique circumstances. At Xtreme Builders LLC, we’re committed to providing personalized guidance and support to help you make the best decision for your project.

Reach out to us today, and let’s start your “Xtreme” dream!

Understanding Construction Timelines: From Blueprint to Build

When you start a construction project, the excitement is often paired with one major concern: How long is this going to take? At Xtreme Builders LLC, we’ve had countless conversations with clients who are eager to see their vision come to life but are understandably worried about potential delays and cost overruns. Timelines matter because time, in construction, is money—and more importantly, it’s your home or project at stake.

Let’s break down the stages of a typical project so you can understand how we approach timelines and why careful planning is key to a smooth build.

1. Pre-Construction (Planning and Design)

This is where it all begins. We start with an in-depth consultation to discuss your needs, wants, and ideas. From there, we work on creating blueprints that reflect your vision while adhering to structural and legal requirements. We also handle permits during this phase—often the part that takes the most time but is crucial for keeping everything above board. Thorough preparation at this stage prevents many potential delays later, and with the help of our design and build software, we can move efficiently through the process.

2. Breaking Ground (Site Preparation and Foundation)

Next, we prepare the site by clearing and leveling the land. Excavation begins, and we lay the foundation—the literal and figurative cornerstone of your entire project. This phase is all about precision; if the foundation isn’t perfect, nothing else will be. Depending on the size and complexity of your project, this can take a week or two, but it sets the stage for everything to follow.

3. Structural Work (Framing, Roofing, and Exterior)

Here’s where your dream starts to take shape. Framing is the process of building the skeleton of your home, followed by roofing and exterior work. At this point, you’ll finally start seeing real progress as walls go up and spaces start to form. For a mid-sized project, this stage usually takes a few weeks to a month, but it can extend depending on the size and materials chosen. Using our integrated software, we manage this phase with a close eye on detail and efficiency, ensuring we hit our targets.

4. Interior Finishing (Plumbing, Electrical, and Drywall)

Behind the scenes, a lot is happening as tradespeople coordinate to install plumbing, electrical systems, HVAC, and drywall. This part of the process requires seamless coordination between different trades to avoid overlap and delays. Timing is crucial here because if one trade falls behind, it can affect everyone else. We use advanced scheduling tools to keep everyone on track, ensuring that this stage progresses smoothly.

5. Final Inspection and Walkthrough

After months of hard work, we’re in the final stages. We conduct thorough inspections to ensure everything is up to code, safe, and functioning properly. Once we’ve checked everything, we invite you to do a walkthrough of your project, ensuring that it meets your expectations down to the last detail.

Conclusion

At Xtreme Builders LLC, we know that sticking to a timeline is about more than just deadlines—it’s about trust and delivering on promises. Our use of cutting-edge technology allows us to work efficiently, providing cost-effective solutions without sacrificing quality. With proper planning, clear communication, and a focus on every detail, we ensure that your project moves from blueprint to build as smoothly as possible.

If you’re ready to build, we’re here to turn your vision into reality, on time and within budget.

Sustainable Materials? Why?

The benefits of building with sustainable materials.

Sustainability has become a buzzword in the construction industry, and for a good reason. Building with sustainable materials not only helps to preserve our natural resources and minimize environmental impact, but it also brings many other benefits to both homeowners and builders. We understand the importance of sustainable materials and encourage the use of such materials in all our projects.

In recent years, individuals have become more aware of the impact of their actions on the environment, especially concerning a homes influence. The National Association of Home Builders (NAHB) report titled “What Home Buyers Really Want” states that while 78% of house-hunters express concern for the planet, only 15% are willing to pay extra for a home that is marketed as environmentally friendly. This is an indication of the static interest in sustainable materials and construction practices. According to the National Association of Home Builders (NAHB), buyers are more willing to pay extra for a home if they are aware that it will result in yearly savings on utility costs. The report indicates that 57% of buyers are willing to pay an additional $5,000 or more, in addition to the cost of the home, to save $1,000 a year in utility expenses.

One of the benefits of building with sustainable materials is that they are long-lasting and require minimal maintenance. This can save homeowners a lot of money in the long run. For instance, using metal roofs instead of traditional asphalt shingles can save up to 40% on energy costs. Also, metal roofs have a longer lifespan, which means they require fewer replacements, saving money on repairs and exchanges. Internally, during the 2021 fiscal year, 30% of our clients requested metal roofs for their homes or structures to capture these long-term savings. Metal roofing in its versatility can be used as roofing, its intended purpose, or as siding. Many structures that utilize metal roofing as siding experience better heat deflection as opposed to other materials. The metals ability to reflect heat operates as a shield to the home’s sub-structure moreover that of the abilities of asphalt shingles. Comparably, on a 90° summer day, painted-metal roofs can reach a temperature of 105° to 115°, whereas asphalt shingle roofs can reach temperatures of up to 168° or more depending on color. The temperature deviation exists because of painted-metal’s ability to deflect the sun’s rays far more effectively than asphalt shingles.

Another benefit of sustainable materials is their energy efficiency. Sustainable materials such as insulated concrete forms (ICFs), for example, have a higher insulation value than traditional materials.

Insulated Concrete Forms (ICFs) are a construction technology that uses rigid foam insulation blocks as a form for poured concrete walls. The blocks interlock to create a continuous insulated concrete wall that provides excellent thermal insulation, soundproofing, and durability. ICFs are an energy-efficient and sustainable construction method that has gained popularity due to their ease of construction, durability, and energy-saving benefits. ICFs can reach R-values from R-22 and beyond.

ICFs can reduce heating and cooling costs by up to 47%, making them an attractive choice for homeowners who want to reduce their energy bills. Although, all this information taken lightly could result in sticker shock when inquiring of a project estimate.  

In addition to their benefits for homeowners, sustainable materials are also good for the environment. For example, using materials such as bamboo, reclaimed wood, and recycled steel reduces the amount of carbon dioxide released into the atmosphere during the manufacturing process. Sustainable materials also promote sustainable forestry and responsible sourcing practices.

Recent data shows that sustainable materials are becoming increasingly popular in the construction industry. According to the 2015 Green Building Economic Impact Study conducted by Booz Allen and released by the USGBC, the green building industry contributed over $134.3 billion in labor income to American workers. The study indicated that the growth rate of green construction surpassed that of conventional construction and was projected to rise significantly, resulting in over 3.3 million U.S. jobs by 2018, generating $190.3 billion in labor earnings. The study also estimated the industry’s direct contribution to the U.S. Gross Domestic Product (GDP) would reach $303.5 billion from 2015-2018.

The use of sustainable materials is also becoming more common in our every-day, residential construction. According to the NAHB, over 80% of home builders use energy-efficient windows, and 53% use energy-efficient appliances in their projects. The use of solar panels is also becoming more common, with 29% of home builders incorporating them into their designs.

Despite the growing popularity of sustainable materials, many people are still not aware of their benefits. The NAHB survey found that only 9% of homebuyers are familiar with sustainable materials, and, in the same study, that only 2% are willing to pay more for them. This highlights the need for more education and awareness about sustainable materials and their benefits.

Xtreme Builders is committed to using sustainable materials in all our projects. We understand that building with sustainable materials not only benefits the environment but also brings long-term benefits to homeowners. By using sustainable materials, we help to reduce our carbon footprint and contribute to a better sustained future for all.

In conclusion, building with green materials is not just a trend, but a compulsory step towards a more sustainable product and future. The benefits of sustainable materials go beyond just energy efficiency and cost savings; they contribute to a healthier living environment and a more sustainable planet. As the construction industry continues to embrace sustainable materials, it is important for homeowners and builders alike to recognize their importance and act accordingly.


Sources:

Quint, R. (2021). What Home Buyers Really Want – National Association of Home Builders. What Home Buyers Really Want. Retrieved May 8, 2023, from https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2021/special-study-what-home-buyers-really-want-march-2021.pdf

WHAT ARE THE BENEFITS?

At Xtreme Builders, we are always excited to provide our clients with new homes that meet and exceed their expectations. Building a new home is an exciting process, and we feel privileged to be a part of it.

There are many advantages to building a new home, including the ability to customize the design to your unique preferences and lifestyle. When you build a new home, you have the freedom to choose everything from the layout and floor plan to the materials and finishes. This means that your new home will reflect your individual style and taste, making it a true reflection of who you are.

Another advantage of building a new home is the ability to incorporate the latest energy-efficient features and technologies. New homes are built with advanced insulation, efficient HVAC systems, and modern appliances, which can significantly reduce your energy consumption and lower your utility bills. Additionally, new homes are typically built with sustainable materials and practices, which can help reduce your carbon footprint and contribute to a healthier planet.

At Xtreme Builders, we take pride in our ability to work closely with our clients to bring their vision to life. We understand that building a new home is a significant investment, and we strive to ensure that the process is as smooth and stress-free as possible. We start by listening to our clients’ needs, wants, and budget, and then work with them to create a design that meets their unique requirements.

Once the design is finalized, we provide our clients with detailed information, so they know exactly what to expect throughout the construction process. We also provide regular updates and progress reports, so our clients are always informed about the status of their new home.

Building a new home is an exciting process, but it’s essential to choose the right contractor to ensure that the end result meets and exceeds your expectations. At Xtreme Builders, we have the experience, skills, and knowledge necessary to build your dream home. We are a licensed and insured residential contractor, and we are committed to providing our clients with the highest quality of workmanship and customer satisfaction.

In addition to building new homes, we also specialize in restoration and renovation projects. Whether you’re looking to update an existing home or restore a historical property, we can help. We understand the unique challenges that come with these types of projects and have the expertise and resources necessary to ensure a successful outcome.

At Xtreme Builders, we are excited to provide our clients with new homes that will last for years to come. We understand that a new home is more than just a structure; it’s a place where memories are made, and families grow. That’s why we are committed to providing our clients with a personalized experience that ensures their new home is everything they’ve dreamed of and more.

In conclusion, building a new home is an exciting and rewarding experience, and at Xtreme Builders, we are thrilled to be a part of it. We are dedicated to providing our clients with exceptional workmanship, customer service, and attention to detail that ensures their new home is everything they’ve dreamed of and more. Contact us today to start building your dream home!