Everything is Going up or just not available …. Sowhat about the my home renovation?
It seems like every aspect of our life is costing us more and taking longer these days. Increases in food, utilities, health care are felt by all.To make matters worse, “Out of stock” in Huntington no longer means “it’ll be in on the next truck”! It may mean forever!So,what about that home renovation or new house you planned to build for so long? Here’s a quick look at the building industry and what’s happening in fall of 2022.
The shortage of talent/labor in the industry has been a major concern as of late, and the data reflects this. Over 80% of builders have had issues with the cost or availability of labor in 2021, and only see the problem expanding this year.
Other concerns from builders include inflation, zoning permit issues, inspection fees, and environmental policies.
The National Association of Home Builders/Wells Fargo data shows the trend with the shortage of building materials over the years. Since 2011, the percentage of builders who have encountered these issues has increased by 63%.
To combat these issues, a good contractor got better at pre-construction planning, ordering materials early, andscheduling subcontractors. Lately, mid-project interruptions, where we’ve ordered materials, were told they are available, then a week before we are ready to take delivery, we are told it’s delayed, sometimes for weeks or we find out it’s no longer available. A project’s schedule is much like a well-oiled machine where one part affects another. When something is not available, scheduling becomes a real nightmare! Our advice to homeowners in Port Washington is if you love something (that awesome faucet, a specialty door, etc.), and told it will behere in 24 weeks, aka 6 months, you’ll need to “love something else”. And it’s good to have a backup.
What about cost? According to the National Association of Home Builders, overallbuilding material prices were down in September 2022, except for concrete. A large quarry shutdown in Mexico have spread thin the supply of domestically produced ready-mix concrete, as well as gypsum, a major component of drywall. That’s up more than 20% over the past year.We saw a good decrease in lumber and steel costs even though both are still significantly higher than pre-pandemic prices.
What’s the take-away? Patience is needed in high doses these days as we all face rising costs, longer wait times, and supply interruption issues. On a positive note, while we are not, and may never be back to per-pandemic levels, there is some improvement overall. If you’ve been dreaming of that renovation, go for it and remember it’s never too early to have a conversation with a contractor to help get the process started.