HOME RENOVATIONS IN 2022
It’s well known that the world has seen a multitude of changes over the past few years, and the home renovations world is no different. From supply chain delays and stoppages to inflation, home renovation and even new construction projects are feeling the impact.
The changes began as the COVID-19 pandemic hit, temporarily shutting down businesses and causing a major pause in production for virtually every good and service. As the world slowly began to open back up, delays continued with very little relief in sight. As we continue into 2022, the narrative seems to be the same.
Cost of Materials
According to the U.S. bureau of Labor Statistics and FRED Economic data, the cost of construction materials had risen 18% in April 2022 compared to April 2021. As seen in the graph above, when the pandemic hit, cost of materials increased at lightning speed and while it seems to have leveled out slightly over the past few months, it’s still predicted to continue the steady incline. According to BuilderTrend, lumber, for example, has seen a 79.5% increase in cost from September 2021 to January 2022. Insulation is up 5.4% since November 2021 and hardware and tools increased by 8.7% from last year.
Supply Chain Issues
In addition to higher costs, supply chain issues also play a big role in home renovation delays this year. With the continuing labor shortage in the construction industry, production and delivery of supplies has been impacted, affecting construction jobs across the nation.
In Florida, companies have begun taking steps to ease some of the issues. The tactic is called vertical integration, where a company will acquire and incorporate some stages of production into their own company; ones that are typically offered from an outside company. One roofing company opened up a light concrete division within their company as it can be used for insulation on roofs. The wait became too long for materials and by opening up this division, it eased some delays. According to BuilderTrend, construction jobs are being delayed nearly 47 days, up from nearly 22 days in 2021, an increase of 117.5% due to continuing supply chain issues.
What You Can Do
While the industry is seeing delays there are some things you can do to ease some of the stress:
With increased prices, it can take some additional planning budget-wise to ensure your project stays on track. Whether you’re adding a deck or renovating your bathroom, DIY-ing or working with a contractor, make sure you fully understand the cost of materials, services, and other fixtures. Having your budget ready before you start the process will give you a good idea of what you can afford. And of course, don’t forget your permits!
Have some additional time on your hands and looking to save some money? Think about DIY-ing your project. Once you get the materials you are the master of your domain.
- Painting a room may take a day or two but is a relatively easy and inexpensive process. Choose your color, grab some brushes and go to town!
- Want a change from solid paint? Install your own beadboard, place some peel and stick wallpaper, or install faux brick paneling. These give an out-of-the-box and modern look to your room.
- Spruce up those windows. It’s amazing what some new window treatments can do for a room! Opt for bright curtains or blinds if the room allows – letting more light in overall can give the room a freshened look.
- New lights and ceiling fans can bring new life to your room. By simply switching out these fixtures your room will have an updated feel overall.
Just like with anything we’ve seen over the past few years, patience is key in this time that we’re in. As the spring progresses and we get into summer, costs will most likely still be high and material availability will still be limited. By planning ahead and having your budget ready, you will be prepared for any home project that comes along.