2020 looked like a promising year for the housing industry before COVID-19 made its way to America. When the virus initially hit the US, construction projects ground to an alarmingly quick halt. But as Americans have adjusted to life in the new normal and many have returned to work, home construction projects have picked back up.
Unfortunately, the resumption of construction projects didn’t line up with the temporary closings of many wood mills across the country. Lumber costs alone increased 60% in the first six months of 2020, according to MarketWatch. Coupled with the new higher tariffs on items from both China and Canada, building supplies have become in short supply with increasingly higher demand.
How are rising supply costs affecting home contractors’ ability to keep the cost of an in-progress project near or at the original quote given to the homeowners?
Everyone in the home construction industry is doing the best we can to keep project costs at expected rates. Reputable home building professionals are able to absorb some unexpected expenses in each project but only to a certain extent. Once contractors are “tapped out”, the added cost falls to the homeowner. We wish we had better news but if you’re planning to start a new home construction or renovation project, you’ll probably need to either raise your budget or make adjustments to your project plans to mitigate the costs. Some homeowners are choosing to scale back the size or scope of their overall project while others are making cuts in material costs by going with less expensive materials.
We are not guaranteeing that the cost of your project will be more than originally budgeted if you’re planning to start the project in the near future. To be quite honest, no one is sure what to expect. The tariffs are likely not going away but supply-demand could eventually even out over time as wood mills and other suppliers re-open production. However, as it looks right now, at the beginning of September, homeowners should expect their projects to cost a bit more than they would have a year ago unless you make adjustments to your plans that keep the project in budget.
The increased cost of supplies isn’t stopping most homeowners from moving forward with their construction projects. Though a small number have chosen to keep their projects on hold for now, most are ready to get back to their plans.
We can’t predict the future. We can, however, give you a free quote on your new home construction or renovation project based on what we know today. To get your free quote, have your project plans ready and give us a call at 662-728-1533 or click here to request your quote online.