Understanding the Impact of Inflation on Your Custom Home Project
Inflation rates are at a 40-year high, making it more difficult than ever for home builders and buyers to complete projects according to plan. In this blog, we cover everything homeowners need to know about how inflation prices may impact their projects in 2022 and beyond. We discuss:
- Building material prices are on the rise
- What this means for custom home building projects
- Ways to save on your custom home build
Few industries have been hit harder by inflation prices than the home improvement industry. As labor shortages and supply chain issues continue to wreak havoc, rising material prices show no signs of stopping in the immediate future.
Rising material prices don’t have to mean that homeowners put an end to their building plans. By taking time to understand the current landscape and plan accordingly, homeowners can complete their custom home builds well within their desired budget.
Building Material Prices are on the Rise
The most recent Consumer Price Index from the U.S. Bureau of Labor Statistics (BLS) was released on September 13, 2022. In this report, the BLS showed that consumer prices across the economy rose by 7.5% in January 2022 compared to the previous year, marking the highest rate of inflation since February 1982.
This spike in inflation and consumer costs has had a serious impact on the building and remodeling industry. In fact, the report stated that home improvement and household furnishing prices increased faster than non-house-related products. Here’s a snapshot of how specific building materials have been impacted by inflationary pricing:
| Material Type | Year Over Year Inflation |
|---|---|
| Appliances |
8.5% |
| Bedding |
17% |
| Bedroom Furniture |
13.7% |
| Floor Coverings |
7.2% |
| Home Décor |
6.3% |
| Living Room Furniture |
19.9% |
| Window Coverings |
16.2% |
What This Means for Custom Home Building Projects
Labor shortages and supply chain issues have already made custom home building projects more challenging. Record-setting inflation rates will only further contribute to these difficulties as homeowners struggle to keep projects on-time and on-budget.
Not only do inflation rate increases impact building material costs, but they also have the potential to impact mortgage rates. Higher mortgage rates and building costs together will make it much harder for those planning to build a custom home.
Ways to Save on Your Custom Home Build
While it’s not impossible to complete a custom home build, planning within a specific timeframe or budget is more challenging now than it was just a few short years ago. Below are a few ways that homeowners can save on the cost of their custom home projects:
Repurpose Materials
One way homeowners can save on their custom home building projects is by using repurposed or reclaimed materials in their projects. Rather than spending money on premium fixtures or finishes, consider adding personalized charm to your space with existing materials you already have.
Price Match
Appliances are some of the most expensive components to a custom home build. Homeowners can save on these materials by doing their own research and presenting any found deals to local retailers. In many cases, these retailers will offer a price match to help you save money.
Hire Specialists
While it might be tempting to try and save money by doing some of the hard work yourself, in most cases this can end up backfiring. Rather than paying professionals to fix your handiwork later, hire a team of specialists upfront to help keep costs low without sacrificing on quality.
Speak to the Experts at Lee Builders
Lee Builders has helped create custom homes for residents throughout the Lake Thurmond region for more than 20 years. We’ve navigated several cycles of economic uncertainty, providing homeowners the expert guidance they need to bring their dream homes to life despite the current financial landscape. Get the specialized care you need to create your custom home by contacting Lee Builders online today!
