Home renovations can be an exciting home improvement project, but they can also be a significant financial undertaking. As we move into 2023, experts are predicting that home renovation prices will continue to rise. In this article, we’ll take a closer look at why that is and what you can expect if you’re planning a home renovation project.
Rising Home Renovation Costs
The cost of home renovations has been on the rise for several years now, and experts predict that this trend will continue into 2023 attributing to a few factors such as:
The pandemic has caused many people to spend more time at home, leading to a surge in demand for home renovation projects. With more people working from home, they need to create home offices and other spaces to accommodate their new lifestyle.
Supply Chain Disruptions
The pandemic has also caused significant supply chain issues in the global supply chain, resulting in shortages of building materials and other supplies needed for home renovation projects. This, in turn, has led to higher material costs.
The construction industry is currently facing a labor shortage, which is driving up the labor cost of home renovation projects. With fewer workers available, contractors are having to pay higher wages to attract the talent they need.
What to Expect in 2023
So, what can you expect if you’re planning a home remodeling project in 2023? These are some reminders you should keep:
As we’ve already mentioned, home renovation average costs are expected to continue to rise in 2023. This means that you’ll need to budget accordingly if you’re planning a project. It’s a good idea to get quotes from several contractors so that you can compare prices and find the best deal.
Longer Wait Times
Because of the supply chain disruptions and labor shortages we mentioned earlier, you may also experience longer wait times for your renovation project to be completed. Be sure to discuss timelines with your contractor and plan accordingly.
With higher costs and longer wait times, you may need to get creative with your renovation project. For example, you may need to consider alternative materials or designs that are more affordable or readily available.
How to Save Money on Home Renovations
Despite the rising costs of home renovations, there are still ways to save money on your project. Here are a few tips:
DIY Where You Can
One way to save money on your home renovation project is to do some of the work yourself. Of course, this only applies if you have the skills and knowledge to do the work safely and effectively. If you don’t, you can eventually cause additional damage and spending more money overall.
Planning ahead can also help you save money on your home renovation project. By taking the time to carefully plan out your project, you can identify areas where you may be able to save money without sacrificing quality.
Hire the Right Contractor
Finally, hiring the right contractor can make a big difference in the cost of your home renovation project. Be sure to get quotes from several contractors, check their references, and ask about their experience with projects similar to yours.
Is Now a Good Time to Renovate?
With the ongoing COVID-19 pandemic, many homeowners are wondering whether now is a good time to undertake a home renovation project. According to experts, there are several factors to consider when making this decision.
Harvard University’s Joint Center for Housing Studies recently reported that the home renovation industry is experiencing a strong recovery from the pandemic, with spending on home improvements expected to reach pre-pandemic levels by the end of 2022. This indicates that there is currently a high demand for renovation projects for the first and upcoming quarter of 2023, which could potentially drive up the cost of materials and labor.
However, the real estate market is also currently booming, with home prices reaching record highs in many areas. This means that homeowners who invest in home renovations now could potentially see a higher return on investment when they eventually sell their homes.
Of course, the decision to renovate should also be based on personal factors such as your budget and lifestyle needs. Experts advise that homeowners should expect to spend an average of $50,000 to $100,000 on a major home renovation project, depending on the scope of the work.
To help homeowners make informed decisions about their renovation projects, the Project Director of the Remodeling Futures Program at Harvard University offers the following advice:
- Consider the long-term benefits of the renovation project, such as improved functionality or increased resale value.
- Research potential contractors and get multiple quotes to ensure that you are getting a fair price for the work.
- Be prepared for unexpected delays or expenses that could arise during the renovation process.
Ultimately, whether now is a good time to renovate depends on your individual circumstances and goals. However, with the real estate market currently strong and the home renovation industry experiencing a recovery, it could be a good time to consider investing in your home.
Bottom line, home renovation costs are expected to continue to rise in 2023, but with careful planning and the right contractor, you can still achieve your dream renovation without breaking the bank. Be prepared for longer wait times and higher costs, and don’t be afraid to get creative with your project.
If you’re ready to get started on your renovation project, consider working with a reputable Atlanta contractor like Pinnacle Building Group & Renovations. Our team of experts has years of experience and a passion for transforming homes into beautiful and functional spaces that meet your unique needs. Contact us now!