There is no hiding the effects the pandemic has had on the many aspects of the housing market. From building and renovating to buying and selling, major changes have occurred. Since the start of the pandemic, material prices have skyrocketed and contributed heavily to the rising costs of construction, which is hurting many construction companies. In turn, this could affect you and your home.
Adding that new room addition or pool deck now costs significantly more than you had originally planned. Even your plans to remodel that kitchen or bathroom have become much more costly. You may still be able to carry out your plans, but you will have to work and spend smarter and plan strategically. Here are some suggestions for how to save yourself from the rising costs of construction and remodeling.
According to a May 2021 Producer Price Index (PPI) report released by the Bureau of Labor Statistics, “Prices paid for goods used in residential construction ex-energy rose 2.4% in March (not seasonally adjusted) and have increased 9.8% over the past 12 months.” Steel mill products prices increased by 17.6% in March alone.
“Lumber prices have remained extremely volatile since the 88.5% increase between April and September 2020. Since falling 22.9% between September and November, the softwood lumber PPI has risen 42.6%.” Here are some cost examples from the Vancouver, Washington, area:
It is estimated by the National Association of Home Builders (NAHB) that the surge in lumber prices over the past year has added $35,872 to the price of an average new single-family home.
Recent international trade considerations are the primary culprit behind the rising costs of construction materials. Higher steel and aluminum tariffs, plus the 20% increase to the tariff on Canadian lumber, have caused material prices to swell to new heights. As far back as 2018, the 10% tariff on Chinese imports has even impacted the prices of building materials obtained from overseas.
All this simply means that any construction or remodeling project you plan to undertake will cost you significantly more than it would have only a year ago. Your budget will now only acquire from half to two-thirds of what it would have previously bought. This also has an effect on finance rates for remodeling loans. In short, everything relating to your construction or remodeling project will cost more than you had planned.
Here are some cost-saving suggestions to help you defray the rising costs of construction and remodeling.
Plan your project as early as possible so you can take advantage of savings opportunities.
Battle the rising costs of construction and renovations with restoration services. You may be surprised at how cost-effective it can be to restore old surfaces instead of replacing them. Revivify Surface, LLC in Vancouver, Washington, and Portland, Oregon, can professionally restore a variety of surfaces to like-new condition, and also protect them so they will last for years to come. We offer:
Call our Vancouver or Portland office today to discuss our services and get cost estimates for the restoration and protection services you need to save money on your renovation or restoration project.