Navigating the Rising Costs of Home Renovation: Tips for Staying on Budget in 2023
In this article, Billdr’s Jamie Kaufman shares some of their expert tips about home renovation budgeting. A trusted nesto partner, Billdr has been revolutionizing the home renovation experience for homeowners since 2020. Billdr brings transparency and trust to home renovation by connecting clients to a network of vetted contractors.
Over the past couple years, home renovation costs have been on the rise, with materials such as concrete, asphalt, kitchen cabinets, and bathroom materials becoming increasingly expensive. Additionally, general contractor prices have also spiked considerably. This has and continues to make it difficult for homeowners to afford the home renovations they want or need to make to their spaces.
However, despite these rising prices, there are ways to save money during a home renovation that can help lower the overall cost and make the renovation more worthwhile for homeowners in the long run. In this article, we will explore the reasons why renovation costs are increasing and provide tips and strategies for saving money for your 2023 home renovation.
- Despite the fluctuations in price, with proper planning and budgeting, it is still possible to complete a home renovation project.
- Home renovation projects can be costly, but homeowners can save money by purchasing their own finishing materials.
- Another way to make the process more manageable and less costly is by taking on some of the initial or final work yourself.
Higher costs for materials and labor
Compared to several years ago, current prices of renovation materials and labor costs have skyrocketed. Materials such as kitchen cabinetry have faced an approximately 40-50% price increase, and concrete and asphalt have experienced spikes in prices by as much as 80%.
“If you look at the prices of gas and groceries, which have both gone up, it’s no surprise that construction prices have also increased,” says James Jefford, project manager at Billdr Renovation. “Even if you buy something locally, it was probably manufactured somewhere else, so as soon as gas prices go up, transporting anything gets expensive,” he explains.
Although material and labor costs have decreased since the height of the pandemic and the shipping complications that were a product of it, prices have yet to fall to their regular rates. Costs for certain materials and general contractor work are still higher than usual and will likely remain that way in 2023 as inflation continues. “Compared to two years ago, you can add roughly 25% onto all renovation prices,” Jefford states.
Despite the fluctuations in price, with proper planning and budgeting, it is still possible to complete a home renovation project. Choosing a type of renovation that will increase the value of your home, prioritizing the most important aspects of the project, shopping around for the best prices on materials and labor, and even considering doing some of the work yourself can all help you save money during the renovation process and allow you to still achieve the home of your dreams.
Buying your own materials
Home renovation projects can be costly, but homeowners can save money by purchasing their own finishing materials. When general contractors purchase these materials, they may add a markup to the prices, which can cause costs to add up quickly.
“If you give general contractors the responsibility of buying all of the finishing materials, they may purchase more expensive items,” Jefford says. But by buying the materials themselves, homeowners can often save hundreds or even thousands of dollars on their renovation project.
To save money, homeowners should research and compare prices on materials before making a purchase. They can visit various home improvement stores, shop online, or even purchase materials directly from manufacturers. It’s also important to consider the quality of the materials and do adequate research in order to purchase them from a reputable supplier.
Doing the smaller tasks
Another way to make the process more manageable and less costly is by taking on some of the initial or final work yourself. Smaller-scale demolition work, such as removing old tiling or tearing down walls, are perfect examples of tasks that homeowners can handle with a little bit of guidance and the right tools.
“If you’re open to the idea of doing your own demolition work, as long as it doesn’t involve a load-bearing wall,” Jefford says, “it can bring down the price of the renovation.” Not only will this save money on labor costs, but it can also save time as homeowners can work on these tasks at their own pace and schedule.
Homeowners can also save money and time during their renovation by handling the final touches themselves. For example, painting is a task that homeowners can easily take on with some basic equipment and a bit of patience.
This task can be done at the end of the renovation process, and can help to bring the entire project together. Not only will homeowners save money by not having to hire a professional painter, but they will also have the satisfaction of knowing that they were directly responsible for the final outcome of their renovation.
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Choose the right renovation
In addition to purchasing your own materials and taking on smaller tasks, selecting renovation projects that will increase the value of your home is a great way to recoup a significant portion of the cost.
“When planning a renovation, aim for projects that give you the best ratio of dollar in to value out,” Jefford explains. “Completing renovations that will greatly increase the value of your home versus improve quality of life will pay off in the long run.”
While kitchen and bathroom remodels may improve the look of your home in the current moment, they ultimately won’t have much to offer down the line. Choosing to work on larger renovation projects will give you a greater return on investment and help pay for the project later on.
“For example, adding a home extension onto the side of your home with concrete foundation walls to support it will be an expensive project, but will double the square footage of your home,” Jefford explains.
In addition to choosing renovations that will increase the value of your home, some projects can even pay off sooner than that. “If you turn your basement into a rentable space,” Jefford says, “the renter’s payments can help pay for the mortgage for the renovation.”
By selecting the most worthwhile project, homeowners can establish a more prosperous future. “Research which types of home renovations are going to add value and subsidize the cost of your project, and create another source of revenue with your renovation,” he states.
Although the cost of home renovations has made it increasingly difficult for homeowners to afford the updates they desire and may continue to do so, choosing the right renovation and sticking to a cost-efficient plan will guarantee a lower price at the end.
By taking a strategic and thoughtful approach to your renovation project, you can ensure that you are getting the best bang for your buck and that you will be satisfied with the final result for years to come.
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