Remodeling during a period of inflation can present challenges, particularly regarding rising costs of materials and labor. However, there are several strategies that can help you manage the impact of inflation on your remodeling project. Don’t let inflation stop you from getting that remodel done. Here’s how.
Budgeting and Planning
reate a detailed budget that includes a buffer for potential cost increases due to inflation. Plan to include a buffer of about 10% to account for unforeseen circumstances plus an additional 10% for rising costs. A Harvard University study predicted that last year, costs would increase by 8.6% so 10% should cover those increases.
Plan the project meticulously to minimize unexpected expenses or changes that could inflate costs further. Every remodeling project has surprises but do your best to stick to your plan to avoid additional costs.
Get quotes from multiple contractors and suppliers to compare prices and find the best rates. Many businesses offer price matching services so shopping around can be a big help in finding the products you want at the very best prices.
You can also negotiate prices, especially if you are making a large purchase. Consider shopping early to lock in rates or materials during sales or promotions. Even if you’re not quite ready to install, if you know what you want and have a place to store materials, you can save a lot by buying when the best prices are available.
Pick and Choose
If you find that your budget simply won’t support the remodel you were hoping for, prioritize the most essential parts of the project and remodel in phases. You can delay non-essential aspects of the project for later.
Don’t forget to think through the impact a limited remodel will have on the room. If you want to relocate plumbing but aren’t ready to replace cabinets, you might find yourself in a kitchen that feels like it’s under construction until you’re ready for your next phase.
Go with Alternatives
As much as you want marble countertops, you might be able to find a look-alike at a much lower price point. Explore alternative materials or building methods that may be more cost effective but sill meet your requirements.
A cast stone fireplace mantel instead of solid stone mantel not only will cost less but be far easier to install. Vinyl wood look flooring instead of hardwood planks may be more affordable for your floors.
Try Off Season
Consider starting the project during a season or time when demand for construction is lower. This often leads to better pricing and availability for contractors and materials. Traditionally, winter is the off season for construction and remodeling projects.
Around the holidays in November and December are especially good times for saving a bit on your budget. Most people are traveling or preparing for guests so projects aren’t on the radar.
Use Financing Options
Look into financing options or loans that could help manage increased costs due to inflation. Many renovation product companies now offer financing, even when you buy online. This gives you the opportunity to pay over time but do the project now.
Do some of the projects yourself to save some money. If you have the skills and time, you’ll be able to reduce labor costs (one of the biggest costs in your budget). Selecting products made for DIY can help the process go a bit smoother.
For instance, RTA, or ready-to-assemble cabinets come in pieces that you can assemble and then install yourself. RTA cabinets are far less expensive than traditional cabinets because they cost far less to ship and don’t have the added cost of labor for assembly and installation.
Should You Wait for Prices to Come Down Before Remodeling?
Though waiting seems like the thing to do during inflation, consider the following.
- Inflation is also affecting home prices. If the alternative is purchasing a new home, that might not be in your best interest financially. A remodel may allow you to adjust your current home at a fraction of the price.
- Your home is an asset that holds value no matter the fluctuations in the market. Investing in your home is always a good idea.
Find out how RTA Cabinet Store can help you transform your kitchen, bathroom, or other space now, despite the unfavorable financial environment.