Myrtle Beach buyers are watching construction costs more closely in 2026, and with good reason. Labor, materials, and lot prices have all climbed over the last few years, even as the broader Coastal Carolinas market shifts toward a more balanced pace with slightly softer resale prices and longer days on market. Closed sales for single‑family homes in the region rose 3.6% in 2025, yet condo prices dipped 3.7%, showing that buyers now scrutinize value and budget more than during the post‑pandemic frenzy. In this environment, understanding why new home builds go over budget around Myrtle Beach is one of the best ways to protect your bottom line before you break ground.

Why Myrtle Beach Builds Are Vulnerable to Cost Overruns

Myrtle Beach and the broader Grand Strand remain popular for buyers seeking newer homes, which keeps construction activity steady even as the resale market normalizes. In 2025, the Coastal Carolinas region logged more than 16,000 closed residential sales and over 24,000 new listings, with Horry County representing the bulk of that activity. That level of churn means trades, materials, and lots stay in demand, which can quickly expose weak budgeting on a build.

At the same time, inventory has risen, giving buyers more choice and reducing the “just get it built” urgency that pushed some projects over budget in 2021–2022. By the end of 2025, overall inventory in the Coastal Carolinas was up 2.3%, with condo inventory up 5.5% and 7.0 months’ supply—conditions that reward disciplined pricing and careful cost control. For buyers planning a custom or semi‑custom home, that shift makes a detailed build budget and strong builder communication more valuable than ever.

1. Incomplete Plans and Scope Creep

One of the most common reasons Myrtle Beach builds go over budget is starting construction before plans and specifications are fully defined. When the architect, builder, and buyer leave key details vague—like cabinet lines, exterior materials, or structural options—costs usually climb as decisions are made on the fly. Change orders often come with both material markups and extra labor time, even when the changes seem minor.

Scope creep can also happen when buyers react to seeing homes in places like Carolina Forest, Socastee, or North Myrtle Beach and decide mid‑build to “upgrade just one more thing.” The Coastal Carolinas data show that buyers are gravitating toward larger homes—sales of homes 3,001 square feet and above grew in 2025—so it is easy to rationalize enlarging floor plans or adding features late. The solution is a clear, written specification sheet before contract signing, including allowance levels that realistically match the finishes you want.

2. Underestimating Site and Foundation Costs

Along the Grand Strand, soil conditions, water tables, and drainage requirements vary significantly from Conway to Surfside Beach to central Myrtle Beach. Lots that look similar on the surface can require very different foundation solutions, fill, and stormwater measures after a geotechnical review. When those conditions are not evaluated upfront, excavation, engineering, and concrete costs are a major source of overruns.

Local residential data underline how much value is tied to location and land characteristics. In 2025, median prices ranged from about 260,000 in Myrtle Beach to roughly 398,000 in Carolina Forest and over 513,000 in Pawleys Island–Litchfield, reflecting land and neighborhood premiums as much as house size. A careful pre‑construction workup—survey, soil testing, and preliminary grading and drainage plan—helps translate those land realities into a more accurate budget before you close on a lot or finalize your build contract.

3. Material Price Swings and Spec Changes

Construction materials have seen several years of volatility, and while the spikes of 2021 have cooled, price shifts in lumber, roofing, and mechanical systems still affect Myrtle Beach builds. Builders who write allowances based on older pricing or national averages, rather than current supplier quotes, risk coming back to buyers with large overage bills when selections are made. That is especially true in coastal‑exposed areas that require upgraded windows, roofing, and corrosion‑resistant hardware.

Nationally, buyers are putting more emphasis on energy‑related features and durability, which often come with higher upfront costs. In the latest NAR data, more than 80% of buyers rated heating and cooling costs as important and 77% said windows, doors, and siding efficiency mattered, pushing many toward upgraded systems and envelopes. Those upgrades are smart for long‑term ownership, but they need to be priced accurately during design so they do not become surprise line‑items halfway through framing.

4. Labor Constraints and Scheduling Delays

Labor is another pressure point for Myrtle Beach construction budgets. The Coastal Carolinas Association of REALTORS® reports that average days on market for single‑family homes edged up to 123 days on a rolling 12‑month basis in 2025, signaling a slower, more deliberate market where buyers take their time. Builders operating in this environment often juggle more projects at once to maintain volume, which can stretch crews thin and lead to delays.

Every schedule slip has a cost: extended construction loan interest, extra months of rent, and potential re‑mobilization fees for subcontractors. For condos and townhomes, conditions can be even more sensitive; condo days on market rose 18.9% on a rolling basis in 2025, highlighting how timing mismatches between selling an existing place and finishing a new build can add financial strain. A detailed build schedule, realistic start date, and firm expectations about weather delays and trade availability are key to keeping time‑related overruns in check.

5. Unrealistic Allowances for Finishes

Even when the structural and mechanical pieces are tightly bid, finishes are where many Myrtle Beach builds drift over budget. Buyers frequently underestimate the cost of coastal‑appropriate flooring, tile, cabinetry, and lighting once they start shopping in local design centers or showrooms. If the contract includes low allowances for these categories, every selection meeting becomes a negotiation over “extras.”

NAR’s 2025 Profile of Home Buyers and Sellers notes that buyers still prioritize neighborhood quality and overall home affordability, but many also compromise on condition or style to stay within budget. In a new build, that same tradeoff happens within the specification sheet: either you keep the allowances and scale back finishes, or you accept that the contract price will rise. Reviewing allowances line by line against current local price points before signing the contract helps align expectations with reality.

6. Regulatory, Permitting, and HOA Surprises

Local requirements can add unplanned costs if they are not researched and included from day one. Myrtle Beach and Horry County enforce zoning, building, stormwater, and flood‑related standards that may require additional engineering, elevation, or site work. Grand Strand communities and resort‑oriented subdivisions can also have architectural review boards that dictate exterior materials, roof styles, and landscaping standards beyond basic code.

These factors show up indirectly in market data as well. In 2025, months’ supply of inventory in the Coastal Carolinas held at about 4.7 months overall, with 3.7 months for single‑family homes and 7.0 months for condos, suggesting a shift toward more “normal” conditions where listings must show well and comply with neighborhood expectations to compete. Buyers planning a new build should ask early about ARB guidelines, flood elevations, tap fees, and utility costs so permit‑driven expenses are in the base budget, not treated as add‑ons.

7. Financing Structure and Carrying Costs

Finally, the way a Myrtle Beach build is financed can turn small cost variances into painful overruns. Carrying both a construction loan and temporary housing is more expensive in a higher‑rate world, even as affordability slowly improves. In 2025, buyers nationally faced mortgage rates averaging about the mid‑6% range, and the NAR affordability index for single‑family homes in the Coastal Carolinas held near the mid‑70s—better than 2023, but still tight enough that unexpected carrying costs matter.

Nationally, 74% of buyers financed their home purchase in 2025, with a median down payment of 19% and first‑time buyers typically putting 10% down. When a build runs long or over budget, those buyers often have less cushion. Discussing interest‑rate locks, construction‑to‑perm loan terms, and contingency funds with your lender before committing to a build can make the difference between a manageable budget adjustment and a project that feels financially stretched by the time you reach closing.

How Carolina Crafted Homes Helps Reduce Cost Overruns

Carolina Crafted Homes focuses on detailed planning and transparent communication to help buyers manage construction costs across Myrtle Beach, Carolina Forest, Conway, and the wider Grand Strand. Our team watches Coastal Carolinas market indicators—like median prices, days on market, and inventory shifts—so that our pricing and allowances reflect current conditions, not last year’s assumptions. That local insight allows us to flag where scope, site conditions, or selections could push a project above your comfort zone before contracts are signed.

If you are comparing a new build to resale options, our specialists can walk you through how cost risks differ between the two paths using current Horry County data. We will also coordinate with lenders, HOA contacts, and design partners to surface potential cost drivers early, from elevation requirements to preferred exterior materials in your target community. Throughout the process, the goal is not to eliminate every variable—that is impossible—but to give you clear, timely information when decisions affect your budget.

Carolina Crafted Homes stays current on Myrtle Beach market trends and can answer questions about cost overruns on new construction. Reach out anytime for guidance—no pressure, just straightforward expertise.

FAQs

Q1: Are construction costs still rising for Myrtle Beach new builds in 2026?
Construction costs remain elevated compared to pre‑pandemic levels, even as the resale market in the Coastal Carolinas moves toward more balance. The 2025 annual report shows single‑family median prices in the region at about 365,000, roughly 22% higher than in 2021, reflecting both structure and land costs. While material price spikes have eased from earlier peaks, buyers should still plan conservative contingencies in their build budgets.

Q2: How much contingency should I budget for a Myrtle Beach custom home?
A common guideline is to hold 10–15% of the total construction budget as contingency, though the right number depends on how complex the home and lot conditions are. In areas with higher site‑work risk, such as parts of Horry County with challenging soils or drainage, leaning toward the higher end of that range is prudent. Detailed geotechnical and civil reviews before contract signing can justify tightening or loosening that contingency.

Q3: Do rising inventory levels in Horry County help control new build costs?
Rising resale inventory mainly affects land and competitive pressure, not direct material or labor prices, but it does change how carefully buyers weigh new builds versus existing homes. By December 2025, overall inventory in the Coastal Carolinas was up 2.3%, with condos up 5.5% and months’ supply at 7.0 for attached properties. That gives buyers more negotiating room on lots and resales, which can indirectly help keep overall project costs in check.

Q4: How do Myrtle Beach days on market impact my construction timeline?
Longer days on market signal a calmer pace, which reduces the “rush” that pushed some builds into poor decisions and overruns during the boom years. In 2025, average days on market for single‑family homes in the Coastal Carolinas hovered around 123 days on a rolling basis, up modestly from prior years. That extra breathing room lets buyers spend more time on plan details and selections before construction, which is one of the best defenses against cost creep.

Q5: Is a new build or resale home more budget‑friendly around the Grand Strand?
Resale homes may offer predictable upfront costs but can come with renovation expenses, while new construction concentrates costs into one structured project. Coastal Carolinas data show the overall median price across property types at 328,000 in 2025, with single‑family homes at 365,000 and condos at 238,825. Comparing those figures to your builder’s turnkey pricing—and layering in likely renovation or upgrade costs—will clarify which option aligns best with your budget.