If you’re thinking about having any home improvements done to your property, there is something that you need to know about. Covid has affected your home renovation and addition costs. The bottom line is that it’s going to be a lot more expensive than you may have expected. This is due to several factors. First and foremost, a labor shortage has been impacting the construction industry for several years. The United States has seen a shortage of trade’s people since 2018. That means there are fewer workers to complete home renovation and additions projects.
There are actually more open positions in the construction industry than there are workers to fill those positions. According to a recent report published by the Bureau of Labor Statistics, an estimated 31 million baby boomers that were working in the construction industry as skilled trades people, retired between 2018 and 2020. They were not replaced. Labor prices started to increase due to this phenomenon. Then Covid-19 hit our shores. People were forced to spend significantly more time in their homes.
It gave us time to reflect. Many people decided that their properties needed home improvements, especially if they were going to spend more time there. That spiked demand for home renovations and additions projects. High demand and low supply equal a vast increase in prices. Projects are taking a lot longer to complete. The wait time for home renovation and additions has also increased. Also, there is currently a shortage of construction materials and supplies including lumber and metal.
That means the prices of construction materials and supplies are going up in a significant manner as well. During the peak of the Covid-19 pandemic, factory work slowed down to a standstill. Needless to say, normal scheduling of material transportation became delayed. In addition, approximately 30% of the construction products and materials that are used in the United States are imported from China. Unfortunately, China is currently experiencing significant delays in the production and export of construction materials and supplies due to Covid-19 outbreaks.
China is the United States largest single supplier of these items. In essence, we are currently experiencing a so-called perfect storm in the home improvement industry. The demand for home renovation and home addition projects is through the roof. The supply of available labor and materials is as low as it has been since World War II. Unfortunately, all of these variables have led to a significant increase in construction related costs. In 2019, the average home improvement project in the United States would cost $9,081. That figure increased to $13,139 in 2020. Covid has affected your home renovation and addition costs by nearly 45% according to this measure.
For more information about how Covid has affected your home renovation and addition costs, 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.