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.

The Sky-High Price of Wood

If you’ve recently considered a remodeling project and are scratching your head at the cost, you’re not alone. The cost of lumber has reached record highs, up over 200% from one year ago, making most building and remodeling projects more expensive than they would have been pre-pandemic. 

So why the sky-high costs for wood? It’s mostly attributed to the housing shortage. With more people wanting to move from the confines of the city into the suburbs, new construction and renovation are booming. Then there are restaurants and small businesses that had to build outdoor seating structures and other accommodations to keep their customers safe and comfortable. Pair those factors with sawmills playing catch up from slowing production early in the pandemic and you have a classic case of over-demand and not enough supply. Hence the price of wood. 

To put it into perspective, the price per thousand board feet of lumber jumped to an all-time high of $1,104, or roughly $1.10 per two by four. Right now, one sheet of plywood costs upwards of $50 or more. 

If you’re building a new home, the lumber you’ll need is going to cost you four times what it did one year ago. If you are thinking about renovating your current home, you’re going to be out of pocket as well. As the average age of the American home reaches 45, remodeling is not just an item on the wish list. For many, it’s a necessity. 

You might be thinking, “what goes up must come down,” right? Yes, but not anytime soon. Homeowners are still renovating and remodeling like never before, especially with real estate prices at all-time highs. Demand for new construction isn’t going to let up either. For now, homeowners who want to build will just have to come to terms with the increase in price. 

That’s not to say that you should ever compromise on quality. When looking for a contractor, make sure they are reputable, experienced, and can break down the costs of the job with 100% transparency. Also, keep in mind that the cost of supplies to the contractor is higher than ever before and they might very well be absorbing some of that cost to get you a price you’re happy with. Take all of this into consideration and make sure you do your homework before you sign on the dotted line.

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 http://www.odonnellbros.com. Advice is for guidance only.