We have been through the Covid Pandemic and experienced everything from lockdowns to social distancing to reduced work forces, home schooling our children and so much more. The construction industry has also experienced its ebbs and flows over the last 14 months, and recently there has definitely been a shift not only in the availability of products but also the pricing. As I'm sure you've seen in the media, lumber prices have gone up 30 to 40% and many other products will follow. Home prices have rocketed and availability has plummeted, which in turn has resulted in homeowners looking at more renovation projects than ever before. It is largely due to not only demand but also to the fact that many industries are still operating at reduced capacity and thus they are not able to produce the quantities as they were pre-Covid. Larger manufacturing plants also have tremendous overheads that still need to be covered even with lesser production, which in turn means higher pricing. This translates into price increases on a lot of building commodities. While it might be distressing for homeowners that are planning a home renovation project to anticipate price increases of this sort, here are some things you can keep in mind: Pricing is not anticipated to decrease in any short-term capacity. This essentially means that while things may seem inflated now, they will certainly only increase or stay the same. We anticipate that a reduction in building material cost is not set to occur any time soon. Regardless of current material costs, renovating or remodelling should be regarded by the value that it adds to your home. Remodeling Magazine’s 2020 Cost versus Value Report backs this up, especially with deck additions coming in with a 7% increase on return on investment from 2019-2020 We often think about the value of a home renovation project in terms of dollars and cents, but you can't discount the joy score, which is the satisfaction and enjoyment of your home, by having a more aesthetically pleasing, more functional space. The National Association of Realtors reports that the joy score of the kitchen renovation is a solid 10 both for homeowners who hire a contractor and for those who undertake the project on their own. Ultimately, we are spending more time in our homes and we now have a higher appreciation level of our immediate surroundings. The absolute question when considering the undertaking of a remodelling project is not only the increase on your home’s value - sometimes it's as simple as, “Will this give me happiness every day?”
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