Homeowners with scheduled renovation projects this year should prepare for price surprises. According to labor data, general prices of construction materials increased by 3% in February, while others, such as construction bricks, increased by 25%. That aside, general renovation contractors currently charge more, taking advantage of the shortage of available skilled labor.
However, despite the increasing costs of renovation materials, home improvement projects remain a top priority for most homeowners this year, compared to buying a new home. Increasing mortgage rates and home prices force most homeowners to opt for home renovation instead of trading their homes.
Those planning to renovate currently focus on specific projects, such as bathroom and kitchen remodeling, with very few hiring renovation experts, such as Northeast Home, for their roof, siding, and electrical updates. A spot check reveals that completing kitchen upgrades currently cost more than $20,000, while bathroom remodeling costs have increased to $13,500.
Is it a Good Time to Renovate?
With evidently increasing renovation costs, should homeowners take on renovations this year? While there’s never a good time to renovate, homeowners should schedule manageable renovation projects.
Budgeting is important; major renovations, such as home additions, are very costly because of expensive building materials. Similarly, homeowners with healthy budgets have unrealistic expectations. The key to completing a renovation project successfully is creating a budget and sticking to it. With inflation and market uncertainties, splurging on home renovation isn’t a good idea.
Prioritize small, necessary projects, as there are no signs of declining mortgage rates. Homeowners should put off major renovations until the market stabilizes. You should focus on small projects that can be paid off in cash or with low-interest credit cards.
How Homeowners Can Save Money on Home Improvement Projects This Year
Even though home improvement projects may not be a priority due to increasing costs this year, homeowners shouldn’t be deterred from achieving their dream homes. Below are money-saving tips that can come in handy:
- DIY demolition – Skilled homeowners can save a lot by DIYing demolition in preparation for the project. However, you should prioritize your safety and your home’s structural integrity. You should also watch out and avoid areas with suspected mold infestation.
- Use the available resources – You’ll be surprised by how your bedroom, living room, or deck looks with a fresh coat of paint. Instead of spending heavily to purchase bathroom or kitchen cabinets and other upgrades, start by freshening the paint.
- Don’t DIY everything – Hiring a professional to fix your wrongly done DIY job costs more than hiring the expert earlier. If you aren’t confident that you can complete the job perfectly, hiring a professional makes sense. For instance, electrical and plumbing upgrades should be left to professionals.
Unfortunately, there’s no indication of when home renovation prices will stabilize. Homeowners should evaluate the market and use other considerations before planning a renovation project. Nonetheless, you should mind your renovation budget and prioritize important renovation projects. While at it, work with reputable contractors to be sure of good and impactful renovation decisions.