Home Renovation Decisions Amid Construction Material Supply Chain Shortages

Raw material shortages worldwide continue affecting nearly every industry in unprecedented ways, including construction and home renovation. While the pandemic played a role, other compounding factors have prolonged the supply chain delays far past the predicted return to normal. The Texas freeze, current hurricane season, rising fuel costs, shipping delays, and labor shortages are just a few of the obstacles facing the global supply chain.

 

Although construction and home renovation projects are affected by these challenges, having a plan lets you anticipate potential issues and complete your project on time.

The main driver behind the current shortages is a combination of high demand, low supply, and the resulting ripple effects.

 

A boom in new construction and DIY projects caused a sharp increase in the demand for construction materials of all types. Prices are also increasing due to various disruptions from raw material producers worldwide affecting the supply chain.

 

The raw materials most impacted by these shortages are lumber, steel, plastic, paint, electrical supplies, and lighting equipment. Not only are the prices higher, but lead times have also increased, translating into longer delivery times.

 

Lumber, in particular, reached a 15-year high in May, and although a significant price drop occurred in June, average prices remain at 1.5 to 2 times their pre-pandemic levels.

 

You should continue to expect increased sticker prices and potential delays on most building materials. Experts believe these trends will not start leveling off until the summer of 2022.

Although the ongoing supply shortages have created issues, there are various ways to adapt. Here are a few things to consider to help bring your renovation plans to completion.

As the traditional lumber supply chain continues being stressed, with low inventory and high prices, many contractors and DIYers had to face a new reality: Either buy lumber in low quantities or put the project on hold until prices decrease in future.

 

As a result, alternative sources of lumber, such as reclaimed wood sourced from old homes and abandoned industrial buildings, became a viable solution to meet the rising demand. Though reclaimed wood is generally unsuitable for structural elements, the look has become trendy for other parts of the house, such as flooring, decks, bars, beams, and many kinds of furniture.

Another major challenge for construction projects today is the issue of delays. Current supply issues mean delays are inevitable, forcing those undertaking a renovation to remain flexible with their schedule.

 

Detailed planning of your renovation is still the key for a successful in-budget renovation, but it’s now critical to have a backup schedule in place that accommodates potential delays.

 

The best way to adapt is to divide your project into individual tasks. Take note of any dependencies, but treat it like a checklist you can complete in any order.

 

For example, if your flooring lumber for the living room is late, you cannot install the flooring or begin any other associated projects in that part of the home. At this point, refer to your alternate schedule and move up another project in a separate space that you can start immediately. Pencil in time to return to the living room when the flooring is no longer on backorder.

Although you might want to personalize your home with modern trends that appeal to your taste, consider how you can keep the home marketable. While unique features are sometimes attractive to buyers, too many quirks may hurt the house’s resale value and lower your return on investment.

 

Keep your renovations trendy but timeless; the best investments are those that are built to last. You can still add your personal style into the design but do so in elements easily altered by a new homeowner. For example, painting the room a vibrant color is a more temporary decision than installing floor tile that doesn’t appeal to the current market buyer.

Fortunately, there is good news for those who wish to finance their remodeling plans because interest rates remain low. Although home improvement interest rates vary depending on your situation, homeowners looking to take out a loan for their project may still benefit from an overall downward trend.

The most competitive lenders are offering APRs as low as 4% or less, making financing a feasible option for many people.

 

Also, consider whether a home improvement loan aligns with your long-term plans for homeownership. If you’re looking to stay in the property for more than five years, the investment may be worthwhile.

Big State Construction is the leading home renovation company in the state of Texas. We specialize in housing projects of all types: Commercial, residential, and custom homes.

 

Ready to start renovating your home? Call us today at (713) 574-8956. We can help you assess your needs, make the right decisions, and enhance your home’s comfort and safety.