It may be a ‘horrible’ time to build a home but if you stay away from the small-time builders (those with low cash reserves) you can make out OK. My son and wife were able to close a contract to build just before all the crazy stuff peaked (if it has). They will be getting a new home for less than what some of the used crap is selling for.
And if I had last night's winning Lottery Numbers, I wouldn't have to worry, either.
I'm very happy for your son and daughter-in-law, but your example does nothing for the plight of the rest of us.
My wife and I were going to build our retirement home this past spring, but our $275,000 house plans became $410,000.