This post was first published on coldwellbankerelite.com
New year, new home improvement projects! As we kick off the new year, you may be hoping to boost your home’s value before you put it on the market—or maybe you’re just ready for an upgrade!
In 2022, a few key industry trends will shape the way we renovate our homes. Keep reading to learn how you can prepare for your home renovation projects this year.
1. The supply chain issues may extend project timelines & budgets
You may have noticed that your favorite products are often out of stock at the store and that prices have gone up. Gas prices have risen as well. This trend is exacerbated by the global supply chain issues stemming from the COVID-19 pandemic. Currently, it takes more time and money to produce, distribute, and ship products than in previous years.
Unfortunately, construction materials like lumber are in especially short demand. It is often impossible to pick up additional materials on demand. Shipping times are delayed and costs have risen significantly.
- What does this mean for you? If you’re working with a contractor on your home renovation, you should ensure that they have all the required materials and appliances onsite before the renovation begins. Otherwise, you could face significant delays or mismatched materials.
- For now, also expect the cost of lumber to be higher than usual and budget accordingly. Hopefully, 2022 will see a return to normal pricing, but it may take a while for supply chain issues to be fully resolved.
2. Product shortages may occur
Even after ordering ahead, many homeowners have noticed longer shipping times. Sometimes, items are out of stock with no indication of when they’ll be available next.
- In short, expect your renovation project to potentially cost more and take longer to complete. Maintain some wiggle room for shipping delays and unexpected costs.
3. Labor shortages may impact costs
In addition to supply shortages, 2022 will likely see a continuation of the labor shortage—especially in the construction industry. Skilled professionals such as carpenters, electricians, and plumbers were already in limited supply before COVID-19.
Renovation projects have been more popular in previous years since people have spent more time at home. At the same time, prospective homebuyers are looking for properties with modern features. The result is that many people are performing renovations before putting their houses on the market or just in their spare time.
Because of this, contractors can be heavily booked (sometimes months ahead) and many are charging higher rates. The Joint Center for Housing Studies of Harvard University reported that home improvement spending will rise by 9 percent in 2022. This increased demand plus the worker shortages are driving up the cost of skilled labor.
- Moral of the story? Plan and budget your home renovation project(s) way ahead of time. It’s never too early to start planning for a home remodel or upgrade, especially if it will require a lot of time and energy to undergo.
4. These renovation projects will be in high demand
The labor and material shortages, plus the supply-chain disruption, are complicating home renovations. Some projects face even longer timeframes and higher costs—these are the ones that will see increased demand in 2022:
Today’s appliances are more energy-efficient, safer and easier to use, and often equipped with smart technology. For all those reasons, homeowners are eager to buy them. But shortages of key materials, especially semiconductor chips for kitchen appliances, have made them harder to find. Builders are waiting months for the right products to become available.
New Doors and Windows
Homeowners are replacing and upgrading their doors and windows for aesthetic and safety reasons. Specialty designs, such as stained-glass windows and intricate woodwork, are in high demand. However, these products are also subject to long shipping times. And with a shortage of skilled tradespeople to install them, it can take up to 7 months to replace doors and windows.
As people have spent more time at home, they’ve become more interested in home gyms, studios, theaters, and so on. There is high demand for specialty rooms, such as converting a garage into a gym or workshop. These projects often involve lighting upgrades, running new cables, and adding doors or windows—all of which require skilled labor and special materials.
Homeowners wanting to add another bedroom, specialty room, or bathroom may face longer project timelines and steep costs in 2022. Last year saw the price of lumber skyrocket, fall, and then rise again at the end of the year. Whereas lumber used to cost around $350 per 1,000 feet in previous years, it now costs $1600 or more in some areas. For any project requiring building materials like lumber, it’s especially important to get all materials on-site before workers begin construction.
5. Expect the unexpected
If you’re considering a major home renovation project, plan ahead as much as possible. Gather estimates of when all your materials and appliances will arrive and aim to have them in place before builders begin work. As your contractors have limited availability, make sure their schedules align with yours. Most importantly, maintain some wiggle room in your budget, as you’re likely to experience some unexpected fluctuation in costs.
All things considered, renovating your home is a great investment in your property’s value and comfort. Regardless of what 2022 has in store, it’s worth it to improve your home—especially if you know what to expect!
Happy new year, and happy renovating!