Renovation Material & Pricing Issues: Part 1
New-home sales climbed 19.3% from 2020-2021. Unfortunately, this also boosted material demands that resulted in shortages. Costs of building materials began to double and triple.
What Caused the Material Shortages?
Just like the demand for toilet paper increased, material hoarding occurred. Some contractors decided to acquire as many materials as they could during the Covid-19 pandemic shutdowns. They continued to build homes even during quarantines. However, it’s not just that.
- More people spending more time at home- It’s no secret that more people spent more time at home, at least for the first half of 2020. Of course, they’re going to find something to occupy their time. For one, they started using their kitchens more than they did in the past. This increased kitchen use has inspired home renovation plans.
- Demand for new homes- People started to focus on value in 2020, and many of them were offered stimulus money and made purchases they otherwise might not make. This includes buying new homes, and the surge in building material demands pertains to that. Insecurity about the housing market and the future of the economy is a large part of what has influenced this decision. The demand for new homes has caused building material costs to skyrocket by anywhere from two to four times higher than what they used to be.
- Demand for remodeling- More people have decided they want to remodel, and this has filled up contractor schedules fast. However, it’s more than that. Some contracting companies wanted the work and could make time for it, but they couldn’t acquire materials fast enough. It probably is because of how many households and businesses were already buying up the supply.
- Slow down on supplies- Lumber, refrigerators, stoves, dishwashers and other appliances, and furniture were in high demand. Even a year later, scarcity still has increased the prices of these and of windows and doors. In May 2021, USA Today reported that 94% of builders have reported a shortage of appliances.
- Wildfires impacting supplies- First, it was the coronavirus lockdowns in spring 2020. Then, September of the same year brought the nation new wildfires in California. Anytime these fires start, it causes the prices of lumber to skyrocket. Any trim, walls, floors or frames and all furniture made from wood causes the prices to increase.
Impacts on Pricing
Lumber manufacturers had no choice but to shut down when the demand outweighed the supply. This didn’t stop builders from attempting to continue their projects, though. Components such as spruce and pine framing, studs, and even OSB and sheathing plywood shot up in prices by over 300%.
Problems in 2020 didn’t stop at lumber availability and pricing, however. This spike in demand also resulted in renovation labor shortages. This resulted in project delays, and this issue might continue for some time.
It doesn’t hurt to plan ahead for your remodeling projects in order to make sure that you can plan for the appropriate amount of time and resources necessary to complete the project. Quality Craftsman is the right renovation and remodeling partner to help you stay in your home for as long as possible. We help families throughout the East Cobb area remodel their homes in order to plan for both now and the future!