The Effects Of COVID On The Construction Industry.
COVID-19 continues to make a global impact on the construction industry. In many ways, residential construction is booming. New homes are selling incredibly fast, and outdoor remodeling has hit all-time highs. Here are some noteworthy statistics reported by CNBC that help illustrate the current economic climate.
- 58%: The increase in new project leads as of June 2020, according to Houzz
- 52%: The percentage increase in home addition projects
- 40%: The increase in kitchen and bath remodeling compared with the same time last year
As people spend more time at home, they’re tackling bigger projects to improve their quality of life. Unfortunately, the construction industry is facing higher prices on softwood lumber as demand increases, affecting the price of materials and the overall cost of remodeling projects. Since lumber accounts for one-fifth of the material costs for home construction, this increase is significant. Here are some pertinent statistics from The National Association of Home Builders and MSN:
- 80%: The increase in the price of softwood lumber since April 2020; the most significant in four months since 1949
- 10%: The depreciation of the U.S. dollar since March 2020, which is affecting U.S. purchasing power of Canadian lumber
- 20%: The percentage increase in tariffs on Canadian goods
Will Costs Continue To Rise?
That’s the million-dollar question. After 37 years of remodeling in Northern Virginia, we’ve never encountered anything like COVID-19. However, our experience tells us that it will have long-lasting effects on the economy and, specifically, the construction industry. We’re recommending homeowners contact their preferred design-build firm now to get on the list to plan their project as soon as possible. Take advantage of more time at home by tackling that kitchen renovation or primary bath remodel that will improve your lifestyle and home’s value.
We’re Still Feeling Positive About 2020, And Here’s Why.
We understand the devastating impact the coronavirus has had on families who have lost loved ones, or jobs, or face everyday challenges like virtual schooling and managing childcare. We are so proud of our Northern Virginia community for stepping up to those challenges and coming together to support each other. Families are spending more time together, and we’re all supporting local businesses like restaurants and boutiques so they can employ their staff and make it through the pandemic. Like all those businesses, we’re developing processes as we learn more about the virus and its spread. We’ve integrated sanitation procedures into each jobsite and our showroom. In addition, we limit our contact with vendors and each other. Our design-build team creates clear and transparent proposals for each job that list our pricing so you can understand the cost of the work and the materials. Ready to learn more about what’s going on in the construction industry? Follow us on Facebook, Instagram and Twitter to keep up-to-date on current events.