How Inflation is Impacting the Cost of Home Improvement Projects

Inflation Rates Rise To 7.5%, The Highest Since 1982: How That And The Labor And Material Shortages Continue To Impact The Home Improvement Market In 2022

Household Consumer Prices Continue to Increase in 2023
What This Means for Home Improvement and Remodeling Projects
How to Save Money on Home Improvement and Remodeling Projects Right Now

The Covid-19 pandemic, in addition to the ongoing trade labor shortage, has completely wreaked havoc on the home improvement industry over the past few years. With a continued shortage of available tradespeople, and a supply chain that hasn’t yet sorted itself out, supply prices continue to trend upward with no immediate signs of stopping, meaning you should expect your spring home improvement projects to cost more than they usually do.

Household Consumer Prices Continue to Increase in 2022...According to the most recent Consumer Price Index from the U.S. Bureau of Labor Statistics, consumer prices across the economy increased by 7.5% in January 2022, in comparison to the previous year, making this the highest year-over-year increase since February 1982. This jump in inflation and consumer costs is impacting builders and remodeling contractors exceptionally hard.

In fact, the Index reports that home improvement and household furnishing prices climbed faster than those of other non-house-related goods, including the following price surges:

Floor coverings: 0.8% month over month, 7.2% year over year
Window coverings: 1.8% month over month, 16.2% year over year
Furniture/bedding: 2.4% month over month, 17% year over year
Bedroom furniture: 1.8% month over month, 13.7% year over year
Clocks, lamps and decorator items: 2.7% month over month, 6.3% year over year
Living room/kitchen/dining room furniture: 2.2% month over month, 19.9% year over year
Appliances: 1.5% month over month, 8.5% year over year

What This Means for Home Improvement and Remodeling Projects

While the labor and materials shortage was already making home improvement and remodeling projects take longer and cost more, the increased inflation rates that we’re now seeing are bound to make things worse. If you’re planning to take on a home improvement or remodeling project in the near future, be sure to account for increased wait times and increased costs. Additionally, since prices are so high, focus on completing projects with high ROI, so the money you’re putting into your home, you can hopefully get back. Projects that are almost always worth your money include kitchen remodels, flooring upgrades and landscaping projects.

How to Save Money on Home Improvement and Remodeling Projects Right Now

While it may seem like now is not the most ideal time to be taking on home improvements, there are always ways to get the job done, while still saving money. If you have the time, budget and patience to take on a remodels during this time, consider these money-saving tips:

DIY Demolition If you have the skills, tools and time, consider doing the demolition for your projects. If you’re planning on hiring a professional to do the remodel for you, doing your own demolition can save you a significant amount of money. If you are going to DIY your demolition, be sure to do so safely, and always wear the proper protective gear.
Use What You Have You’d be surprised how different your space can look and feel by switching up the paint. Rather than spending the money to get new cabinets and hardware for your kitchen and bathroom, consider painting them instead. Painting kitchen cabinets is significantly cheaper than replacing them, and can pack quite a punch when it comes to changing the look and feel of your space. Similarly, you can spray paint the hardware on your cabinets rather than buying new pieces. A stunning gold or bronze spray paint will make your old cabinet hardware look new and luxe.
Price Matching Although appliance prices are particularly high right now, you can still save big by doing your research. If you’ve scoured the web and found a great deal, see if a local retailer will match the deal. Oftentimes they will, and you’ll save money by not having to pay shipping costs

Don’t DIY What You Can’t Having a professional come in to fix a DIY job gone wrong usually costs more than hiring out for the project in the first place. If you don’t feel confident that you can successfully complete a job on your own, you’ll likely end up saving yourself money by leaving it to a professional. Plumbing and electrical jobs are almost always better left to the pros.