One of the variety of consequences from COVID shutdowns and new federal policies is a rise in the price of raw building materials such as copper and lumber. In a recent study by fortune.com, the average price of lumber was shown to be 280% higher than what it was pre- pandemic. Copper prices stood at just under $4.54 per pound as of early May, up 30% for the session. This is a higher increase than was foreseen in January, with strategist guessing it wouldn’t rise higher than 3.50. Some even say copper may be the new oil.
How This Changes Real Estate
Copper and lumber are two materials necessary to build new housing. Some builders state that the cost of lumber alone would increase house prices by $200,000. In the current market of increased demand and low supply, the usual solution of creating new inventory is becoming increasingly difficult. In light of this, more homeowners are looking to renovate, and more buyers are looking at homes they wouldn’t normally consider due to the amount of work required to update them. However, those looking to improve their home can run into the same supply obstacles as homebuilders.
With more time spent at home, and more buyers purchasing homes that aren’t ideal, there’s an increased desire to beautify and redo living spaces. Lumber and copper costs are prohibitive for many renovations that homeowners would usually undertake, though. In light of these changes, here are some ideas on how to significantly improve your space without using lumber or copper.
Instead of New Kitchen Cabinets
Instead of purchasing new cabinets, consider painting the ones you already have. If the idea of prepping for paint overwhelms you, look into paints that require less sanding, such as chalk paints. You can also update your handles and hardware for a modern or more personalized look. Additionally, the look of your countertops can change the whole kitchen. Quartz and marble options will add value to your home. It may not be the complete kitchen demolish you dreamed if, but these changes will have enough impact to satisfy.
Instead of Hardwood Flooring
If you haven’t considered laminate or vinyl instead of hardwood, now is the time. Options are growing increasingly stylish, modern, and affordable.
Instead of Plumbing and Electrical Projects in Bathroom
It may not be time to update the electrical or plumbing, but you can certainly change your light fixture. New shower doors can also change the entire look of your bathroom, as can a little bit of creative tile work.
Instead of a New Wall
Maybe you’ve wanted to divide a space or create more privacy in a part of your house with a new wall, but lumber costs have halted your project. Try the more cost effective bi-fold doors, or a stylish dividing curtain to create a division of space.
You now know about the current shortages and how they are influencing the market. You also have some ideas on how to make your newly purchased or about to be sold home more attractive without incurring unforeseen costs. Awareness and some creativity can help make your space suit you in an affordable way. Do you have more questions about the housing market and how you can compete in a time of inventory shortage? Send us an email at email@example.com. We would like to help!