Remodeling experts say home renovations may be one of the best uses for that Economics 101 class many people blew off in college. Simple supply and demand can determine the type of granite available for kitchen counters. The cost of a barrel of oil could make a home- owner decide on tile from Virginia instead of that Italian version they had their heart set on.
“We have seen the cost of most commodity building materials — lumber, plywood, etc. — remain fairly stable for the last six to 12 months,” said Bill Millholland, executive vice president of Case Design and Remodeling. “Some special-order materials, such as cabinetry and tile, have seen fuel surcharges added to their shipping costs. This results in a price increase to consumers.”
“Any product that requires petroleum during production or fabrication, or is petroleum-based, has simply skyrocketed,” said Jason Kirkpatrick, president of Kirkpatrick Construction. “We have received bimonthly and monthly increases on exterior finishes from 7 to 16 percent.”
Some of the materials most affected include asphalt roofing shingles and any product with vinyl, such as siding and replacement windows, Kirkpatrick said.
“Copper, being a metal, is bought and sold based on the daily market value. The cost has continued to increase and impacts products like copper plumbing pipes and electrical wire,” he said.
Because fuel costs fluctuate, so do delivery charges. Kirkpatrick said estimates for many materials, including appliances, are only being honored for 15 to 30 days. “Then they are being increased,” he added.
Manufacturers also will dump items that do not sell quickly.
“We have run into a few instances of clients picking materials only to find out they have been discontinued. It used to be that items lingered for some time; not anymore,” said Millholland who added that popular items can sell out and then not be resupplied for some time.
For investors buying a house to remodel and flip, time is of the essence.
“If you are buying a fixer-upper to flip or keep, you need to do it quickly as time is literally money,” Kirkpatrick said.
“The longer it takes to remodel the home, the more material costs will increase.”
