It's no secret that times are changing more than ever and the construction industry has seen some major changes over the past few years. Due to the pandemic, global shortages of supplies, lack of availability for labor among contractors + a million more things, renovating your home in 2022 is a little different than ever before...
Here's why:
Lead Time on Materials
With all that is going on in the world lately, it has become much more difficult to access certain
materials as quickly as we used to. If those materials are coming from overseas, you can expect to see them in about 10-12 months. To best prepare for a smooth renovation process, you need to allow your renovation timeline to accommodate for extended lead times.
Longest lead times I have seen recently that should be ordered immediately:
Windows
Appliances
Furniture
Cost of Literally Everything
When the demand of anything goes up, so does the price (obviously). And the construction industry has seen exactly that over the past year. Due to inflation and the high demand of building materials, the cost to renovate a home is significantly higher than we have ever seen before. In addition to the cost of materials, the price of labor has also significantly increased. This is due to the high demand in custom home builders.
The Waiting Game...
If you're located in the Metro-Phoenix Area, I assume you've seen the massive amount of residential renovation projects taking place in just about every neighborhood. Does it seem like it's been taking some of those projects forever to complete? That's because it is, especially in the city of Phoenix. With the high demand for home renovations, the cities have been flooded with building permit request. So yep, just go ahead and add some more additional waiting time to your project because it could be a few months before you get your permits approved.
But while you wait, get those windows and door ordered!
Inventory on the Market
Okay, I know that this one gets old, but it is still so relevant. Competition for Buyers has become so intense that some of your renovation budget might be spent on just securing ownership of the home itself. It might consists of waiving an appraisal or raising a purchase price overall, but chances are that it is something that just has to happen. Although this seems intimidating, it is better to invest in real estate sooner than later. In order you to have a renovation project, you need a home to renovate. Spending the money here will always be worth it.
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