As countless businesses have suffered during this pandemic, the home remodeling industry has surprisingly soared. Many people are quite content to work from a home environment, as their own house is being remodeled under their own watch. With more time to research, homeowners realize that investing in their own property now will surely pay off sooner than later!
Remodeling Industry During The Pandemic
The remodeling industry has not stopped to take a break during these last 18 months! Folks with extra cash on hand or the ability to acquire some fluidity to renovate their residence all have concluded that the time is now! The BMO Real Financial Progress Index surveyed that over half of homeowners will put more into their homes in 2021 and beyond than they ever intended before the pandemic. The study also indicates that most will use their own excess cash as opposed to loans or credit cards. This is great news for the homeowner and the credible and reliable home remodeling firm that the homeowner chooses!
How Business Owners And Workers Adjusted
Adjusting through these tough times has ended up in an insatiable increase in demand for the remodeling industry! With so many homeowners staying at home, this created a sense of safety, allowing contractors the ability to work side by side with the owner. Workers were in high demand as opportunity arose in the remodeling market. This increase in demand has made it almost impossible for remodeling firms to keep up with the demand due to a lack of workers in the workforce. With lower supply of employees, labor is coming at a premium and this has to be passed on to the homeowner to keep remodeling firms solvent.
Industry Boom after Pandemic and Challenges
Moving into our last quarter of 2021, the industry boom in remodeling has created numerous challenges. Primarily, finding supplies such as lumber has been increasingly more difficult. Reports stated that lumber which once cost approximately $350 per 1000 board feet skyrocketed to over $1,500 just 13 months later, May 2021. When adding all the math cumulatively in the lumber industry alone, single family dwellings rose 12%, remodeling jumped 7%, but the mills were only producing at 3.3% more efficiency to keep up with growing demand.
Overall material costs have gone through the roof, as with the labor shortage and increase in wages, the materials employers must also pass their increases on to the builders to keep their business solvent. A recent report indicated that a 200 square foot deck built in 2019 would have costed $3,200 and that same deck would cost over $10,000 to build in 2021. This gives you a true vision of where the increase in costs are coming from; this has been no barrier during the pandemic as plenty of folks have been holding off on remodeling and now know they will be spending more time at home and are ready to do it.
The secondary challenge that the pandemic provided was simply too much business (which is a great thing of course), yet not enough qualified employees to provide the proper service homeowners deserve and aspect. While continual growth is a cherished ideal, ensuring both the customer and the company remain happy and within their comfort zones is paramount. Achieving this during such uncertain times can be difficult for some businesses, we suggest always employing those that have been around for decades and have the reviews to prove their work.
The pandemic created a strong demand in many business. People who normally travel and eat out are now finding new ways to find pleasure – including a significant online shopping spike, from exercise equipment, sporting equipment, cooking equipment, new furnishings, and take out food delivery. Now picture the flip side of this equation is that all the businesses selling these products are experiencing incredible demand and creating more opportunity for these businesses to need more employees, new software, new services, and materials. Again creating this increase in demand across the board, unless you are a concert venue or sporting venue, your business likely grew significantly during the demand.
This means more money for remodeling – and recognizing exactly what is happening in your own business with employee and material shortages; costs inevitably have to go up to support the business.
Delays In Remodeling
Delays are not uncommon when it comes to remodeling. Permits, materials, supplies, and work force all account for delays in the remodeling industry. With Covid-19, add in another factor that can stunt the growth of your new remodeled home…Just trying to acquire permits have been delayed substantially in many counties due to the pandemic. Ensuring your remodeling firm has long-standing relationships with their vendors will guarantee a quicker outcome for your project!
As stated above, the rise of lumber prices alone adds to the cost of remodeling your home. Material availability can be at a stand-still with too many people, legitimate or not, trying to compete to remodel your house. Plus, with so many cargo ships waiting to unload, many materials are still sitting in the ocean for some. Patience must be your friend if you are looking to remodel during the pandemic as start dates are out 4 months with the cabinet manufacturing timeline to date.
Future Of The Remodeling Industry
The opportunities look strong for the entire American remodeling Industry. Home sales have skyrocketed in many neighborhoods here in the Southwest. Remodeling has surged beyond servicing levels available and new home owners are a ripe group of folks that will recognize in their first year of their new home, exactly what they want to remodel, further contributing this inflated demand. It may in fact stay strong for years to come as news reports that more folks reporting they enjoy working from home, removing the commute and even willing to take a pay cut to keep the work location.
Will The Growth Last?
The growth in remodel has been cyclical throughout time. To balance the “ebb n’ flow” of the remodeling market becomes complicated. But the end result of this industry is always a positive when all the proper regulations and rules are met. The customers will continue to be booked off referrals alone based on quality and reliability of your craftsmen. And if you need a designer, the aesthetic is easy to see whether you appreciate the firms design styles.
What Will Happen To The Business & Employees?
As the economy continues to level out after this pandemic, so too will the remodeling business, and all its employees involved. When it pertains to our location here in So Cal, businesses of all avenues will come and go, but those that provide excellent service and value will always survive. When you are ready to remodel, be sure to learn more about design build remodeling options like Sea Pointe, as we make the process convenient and fun by having all your construction professionals under one roof. We’ve been creating and developing kitchens, bathrooms, to outdoor living and whole home remodels since 1986. Award winning designs, service, and construction keeps us earning repeat and referral clients on the daily.
Get your complimentary design consultation and you’ll see for yourself what all the accolades are about!