Homeowners Be Aware of Rising Remodeling Costs

If it seems like everything is costing more these days, it’s not your imagination. From soaring gas prices to rising grocery bills, the pandemic and the war on Ukraine are impacting consumers’ pockets in more ways than one. 

In the remodeling industry, we’ve seen homeowners renovating their properties more than ever before, but those projects are coming at a price. The US Census Bureau reports that construction materials are up 17.5 percent year over year from 2020 to 2021, the highest increase in a single year since the 1970s. Everything from lumber to concrete to metal is costing more and prices aren’t expected to drop anytime soon. 

Let me give you an example. An average-sized 1,600 square foot house would need roughly 50 sheets of new plywood for a roof. That plywood would cost a contractor a little less than $20 per sheet before the pandemic. Today, the price is nearly $50 per sheet. That 40 percent increase isn’t a cost that a contractor can simply absorb. Some of it has to be passed down to the customer.

Wood isn’t the only commodity where prices are exploding. Russia is a major producer of copper and aluminum, which have seen price surges of 33 percent and 25 percent respectively year on year. Then, of course, there are issues with getting the materials where they need to go. Pandemic-triggered worker shortages are causing massive delays in logistics as companies struggle to find truck drivers. 

Let’s not forget the price of fuel. The average cost for a gallon of gas in the U.S. hit a record of $4.17 a gallon earlier this week, breaking a previous record of $4.11 that had stood firm since 2008. Here in Connecticut, the average price per gallon is $4.36, the eighth highest in the country. Prices were already going up before the invasion of Ukraine, but costs are now skyrocketing as the oil industry rejects crude from Russia.

So when do we think things will level out again? Truth be told, not anytime soon. The U.S. is still struggling with a worker shortage and materials are slow to get into warehouses due to shipping delays and material scarcity. Work is getting done, but at a higher cost and a slower rate than we are used to. My advice? Plan to be patient, have a little flexibility and be sure to hire a reputable professional for any project you’re considering around the house. 

Bob O'Donnell is the owner of O'Donnell Bros, Inc., a Bristol-based home improvement company established in 1975. Email your questions for Bob to info@odonnellbros.com with the subject line “Ask the Pro”. All questions may be considered for publication. To contact Bob for your remodeling needs, call O'Donnell Bros, Inc. at (860) 589-5155 or visit www.odonnellbros.com. Advice is for guidance only.