With health and safety as the primary concern, virtual consultations, masks and sanitization have become the norm.Īs we specialize mostly in large-scale projects, our work areas generally stay "quarantined" from the rest of the house using zip walls, floor coverings, and other protective equipment. In the DMV (Washington DC, Maryland, Northern Virginia) astronomical property value increases, combined with low interest rates and booming renovation demand have pushed new project start dates out.Īs with most industries, General Contractors and Design/Build firms like us had to adapt. The real delays now are related to getting renovations scheduled. Certain materials can still be challenging to acquire, so an increase in project duration should still be expected. While many projects were delayed by material shortages and logistic issues in 2020, suppliers have begun to improve.
While new contracts reflect the price increases of the past year, once clients sign they are locked-in and protected from the trending future increases. The good news is that even through 100%+ increase in building material costs, we at Moore Construction Group haven't charged clients under contract an additional dime. How does this affect those looking to renovate?Īs material costs continue to rise, renovation project costs are bound to continue to increase as well. This means clients are getting back in their newly renovated homes more quickly if not at reduced cost. While projects may not be getting more affordable, we agree that supply chains have improved. "The coming year will probably bring selective reductions in materials costs and supply chain bottlenecks but despite some easing for builders, he still expects that construction input costs are likely to continue rising more than overall consumer prices." Ken Simonson, chief economist at Associated General Contractors of America noted:
2022 marked the largest increase in construction cost since the US Census data began in 1964. No one can say how long this trend will continue, but building as a whole is getting more expensive at a rate faster then the industry has seen. We feel it everyday from the grocery store to our building finish materials. In a market segment with historically sub 4% annual cost increases, represents a profound surge. The increase in cost in 2022 alone is a staggering 16.8% or 16.6% (Fisher vs. As the closest analogue to large-scale residential renovations, this index is especially pertinent. Perhaps the most compelling indication of cost growth comes from the US Census Index for New Single-Family Houses Under Construction (above).
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