With the Soaring Cost of Building Materials Is It Better to Relocate or Rehab?
The COVID-19 pandemic has hindered a number of industries over the past year. In addition to the obvious, like restaurants and live entertainment venues, the effects of the Coronavirus are also being felt in the home building market.
As an example, in late April 2021, the price of lumber increased so much that it added nearly $36,000 to the average price of building a new single family home, and almost $13,000 to the build price of a multi-family property just since one year prior, according to the National Association of Home Builders.
What is the cause of this substantial spike in the price of lumber?
One of the key reasons is lack of sufficient domestic production, as well as large curtailments in lumber mills that lasted well into the 2020 home building season. Unfortunately, the higher price for builders and suppliers is passed down to the ultimate consumer – you.
If the skyrocketing price of building materials has taken building a new home out of your price range, it may be time to consider making an addition or renovation to your current residence instead. In addition to a lower overall cost for renovating versus relocating, you could save money in other areas, too, such as:
- Paying movers to take furniture and other items
- The cost of home inspections and repairs that may be needed for pushing the sale of your current home through
- Realtor commissions
If you currently reside in Orlando or the surrounding Central Florida locale, give us a call and set up a time to talk with a home renovation specialist. We can provide you with ideas that fit your need for expansion, renovation, or updating.
Solving the Lumber Crisis. National Association of Home Builders (NAHB) https://www.nahb.org/advocacy/top-priorities/material-costs/solving-the-lumber-crisis