Being stuck in our homes over the past year or so has given many of us the home improvement bug, but now might not be the time to take on big home improvement projects. COVID and quarantines have resulted in massive disruptions to supply lines, manufacturing delays and labor shortages – a perfect storm that has skyrocketed construction costs.
According to the National Association of Home Builders, the cost of building materials has increased by an average of 26.1% in the last year. Wood prices, in particular, have more than doubled since December 2020, and the prices of luxury materials like marble have also increased significantly in recent months.
Even though you can afford the higher material prices, there is no guarantee that you will find what you need. Everything from vinyl and resin to appliances has become more difficult to acquire, with 90% of builders report shortages basic supplies.
One email a day could help you save thousands
Expert tips and tricks delivered straight to your inbox that could help save you thousands of dollars. Register now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to our sending you money advice as well as products and services which we believe may be of interest to you. You can unsubscribe anytime. Please read our privacy statement and terms and conditions.
Plan more for the basics and save to avoid larger loans
What does this mean for owners? If you are looking to do home repairs or renovations, you need to increase your construction budget significantly. You should plan to spend a lot more on materials, and these shortages also mean delays could add to construction costs in other ways.
For example, a kitchen remodel that could take six to eight weeks a year ago could now take twice as long as your builder faces labor shortages and tries to get the appliances you need. you need. This means more time costs for your builder – and for you. After all, the longer your kitchen is out of service, the more time you need to order food or find other ways to get your morning coffee fix.
The Ascent’s selection of the best personal loans
Are you looking for a personal loan but don’t know where to start? Ascent’s choices for the best personal loans help you demystify the offers available so that you can choose the one that best suits your needs.
See the selections
Larger home improvement budgets also tend to mean larger home improvement loans. While interest and refinancing rates are remarkably low right now, now is not exactly the best time to take on more debt than expected. Additionally, lenders are always hesitant to extend excess credit in an uncertain economy, so it can be more difficult to get a personal loan.
Instead of planning for a large loan, focus on saving to finance your home renovation as much as possible on your own. This minimizes your loan needs, which in turn reduces interest charges. You are also generally more likely to be approved for a small or modest loan than a large loan.
Keep and fix what you can
Home appliances are one of the main categories of shortages, so the new refrigerator you had in mind might not be an option anytime soon. If possible, keep your appliances rather than buying new ones.
In some cases, this may mean that you need to repair the devices you own. If they are still under warranty, contact the manufacturers. Otherwise, find a local store that can repair and beautify your devices.
Repairing your current devices not only saves money that you can spend on other materials – especially with costs still rising – it also means investing money in your city’s economy by recruiting. locally. And repair and recycling also helps prevent these devices from ending up in landfills – a win-win-win solution.
Buy used when you need replacements
If you can’t get by with your current devices for some reason, consider replacing them with new, lightly used purchases. A used refrigerator or washing machine that is only a few years old could still be an improvement over your current machines, while respecting your budget and your shortage.
And, just like with new devices, using local repair companies to breathe new life into a used device is good for the economy and the environment. You can check the area’s social media accounts and message boards to find everything from major appliances to small specialty machines, often on the fly. Research devices before you buy, and don’t be afraid of a good deal that may require a bit of elbow grease.
The Ascent’s Choices For The Best Debt Consolidation Loans
Want to pay off your debts faster? Check out our list of the best personal loans for debt consolidation and lower your monthly payments with a lower rate.
Pay off debt faster