Since the start of the pandemic, many homeowners have been stuck at home, unable to vacation. With time and money on their hands, they have decided to put their unused travel money into their home. No matter the size of the remodeling project, big or small, they all have seen two common threads: rising costs of materials to create these projects, as well delays or shortages of getting these materials in hand.

There are many factors causing the rising cost of materials. The shutdown of the workforce has created a backlog of materials we use every day. It has also exposed how reliant we are on other countries for our materials. Tariffs and trade issues drive costs up, as do environmental regulations and changing demand. Many projects require lumber, steel, fuel, and iron, which have all seen a drastic increase recently. These constraints mean that increased supply will not bring prices down any time soon. It also explains why prices rose so sharply in the past year. The price of lumber and other building materials has nearly tripled in the last year, up to 300 percent according to the Home Builders Association of St. Louis. Locally, that means that lumber and materials for a new home cost $30,000 more today than they did a year ago.

Ultimately, lumber and plywood prices will drop as demand falls. At some point, most of the people who can take advantage of low mortgage rates will already have bought a house. And interest rates will eventually rise. With time, the current constraints will get better and despite these challenges, investing in your home is still a smart way to add value and comfort to your home.

If you are interested in remodeling you’re home, give us a call at 314-909-1800 or contact us here.