We already know that lumber and paint prices are on the rise, but according to a new report from Houzz, other renovation materials (not to mention various renovation services) are set to spike in cost as well.
It’s not a huge surprise: Renovations have surged since the pandemic began. In fact, residential remodeling activity hit a six-year high last quarter. And apparently, that trend‘s only going to continue.
According to Houzz’s data, both design and construction remodelers expect increases in project inquiries and committed projects in the third quarter of the year. The platform’s overall Expected Business Activity Indicator is now at its highest point since 2018.
The news is obviously good for those providing the remodeling. But for investors who need to flip or renovate a property? It means problems (and higher costs) are on the horizon.
“Heightened activity is not without its challenges,” said Marine Sargsyan, a senior economist at Houzz, in a press release. “Supply chain delays, extreme weather patterns, rising product and material costs, and labor shortages create major headwinds for the industry.”
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