How To Deal With Higher Construction Costs
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As home values have risen, so have the cost of construction and home improvement projects. This increase in construction cost makes it important to plan for during the home buying process.
If you want a home with a pool for example, in some cases it may make more sense to buy a home that already has one installed.
My personal experience with this was a pre-pandemic quote to have a small pool installed for around $25,000. Fast forward to a year later and that same exact pool cost $45,000 to install.
Another project that significantly increased in price was replacing flooring, which also nearly doubled in price. When asking the contractors for the reason for these significant price increases, the answers varied from scarcity of supplies, labor shortages, and inflation in general.
The rise in home values coupled with the hefty increase in construction cost have made a big impact on how home buyers go about choosing their home.
Now, they must be more careful in deciding if they are willing to take on fixer-uppers or homes that just need a little TLC because that little TLC can end up having a big price tag.