Are you planning an addition or remodeling project at your home in the near future? If so, you need to be aware of the fact that construction costs are increasing at a rapid pace. The increase in construction costs will affect your budget. In essence, it’s going to cost you more money for the same project. That’s not a big deal for people who can afford it. In essence, it won’t have that big of an impact on your finances. However, if you’re borrowing the money from a lending institution than you need to make them aware of the fact that the project will end up being over the original budget.
That means you’ll need to borrow additional funds. Otherwise, you need to be prepared to pay the difference out of pocket. If you can’t afford to spend over the original budget for your home improvement project than all is not lost. Then again, you’ll need to make some important decisions. There are a few things that can adjust the numbers down a bit. For example, if you’re planning for a kitchen remodel, you may need to use a less expensive countertop material. There are multiple price ranges for granite, marble and quartz.
You don’t need to go with the most expensive option in order to make people jealous. Another way to bring your project back down to the original budget is to scale back on the size. For example, if you’re addition is still in the planning stages it’s not too late to reduce the square footage. A smaller addition can still serve the same purpose as the original plan. It will also save you some money. At this point you may be curious why construction costs are skyrocketing? You can thank the Covid Pandemic for that.
When people shifted from working at an office to working from home, they began to realize that their properties needed some upgrading. Many other homeowners decided that it was a good time to spend money on their homes because they were spending far less on things like going out to eat, and taking vacations. This combination led to a significantly higher demand for home improvement projects. That in turn led to a significantly higher demand for labor, which of course increased the price of labor.
In addition, the increased demand for construction caused chaos with the building materials supply chain. It was stressed long before the Covid pandemic started. The building materials supply chain is now at a breaking point. So, we are now faced with a high demand for home improvement projects, and a low supply of both labor and materials. High demand and low supply typically lead to increased prices in products and services. So, how will this impact your project? You should expect to pay anywhere from 10-20% higher or more for your home improvement project.
For more information about how the increase in construction costs will affect your budget, or to schedule an initial consultation in Connecticut or Massachusetts please contact us today at 860-341-6373. DBC Solutions takes great pride in providing the highest quality custom carpentry and contracting services in the home improvement industry. Our business model has been the same for 17 years. Doing things, the right way the first time every time is the only way to do it.