High inflation rates can impact many aspects of our lives, especially when it comes to our home. If you plan to complete a construction project any time soon, you should be prepared to pay more when inflation is high.
Rest assured that a home improvement loan can come in handy if you don’t have the cash to cover your entire project upfront. It can provide you with a lump sum of money at once. You’ll then repay what you borrow plus interest over time.
Ways Inflation Can Affect Construction Costs
Here are a few ways you can expect inflation to raise the overall cost of your project.
Materials
While the cost of some materials has declined since 2023, many are still far more expensive than before the pandemic. Depending on your renovation project and what materials you want to use, you can be sure it will be a significant portion of your budget. If costs are getting high, you may want to change your construction plans to accommodate cheaper materials.
Labor
If you’d like to hire a contractor to help with your project, you will pay quite a bit for labor. Many contractors are in high demand and have raised their prices as a result. Of course, you can always do it yourself or hire a pro for the most complex parts of it.
How to Save Money on Construction
The good news is there are plenty of ways you can lower your construction costs. Here are some suggestions.
Get Multiple Bids
While it may be tempting to go with the first estimate you receive, doing so can cost you. A good rule of thumb is to request bids from three different contractors. This way, you can compare quotes and avoid overpaying. Keep in mind, however, that the cheapest contractor isn’t necessarily the best option. Ask for references and read reviews to make sure you choose a reputable professional.
Do It Yourself
Even if you don’t consider yourself handy, there’s a good chance you can complete some of your construction projects yourself.
There are tons of online videos and tutorials to help you out. Of course, it’s important to be realistic about what you can do. While you might be able to paint or install wood floors on your own, more complicated tasks, like electrical and plumbing work, should be reserved for the pros.
Source Your Own Materials
Some contractors will offer to buy materials on your behalf. Even though this is convenient, it can also be costly as many of them mark up their prices to collect commission. If you have the time and are serious about saving money, shop around and compare various materials from different retailers. You might even want to explore gently used options at consignment stores, garage sales, or online marketplaces.
Build Up Instead of Out
Did you know it’s less expensive to build a two-story home than a one-story home with the same square footage? This is because the two-story home has a smaller foundation and roof. If you’re thinking about whether to build up or out, understand that building up may save you more money.
Go the Standard Route
As you choose the size of various doors, windows, cabinets, bathtubs, showers, and other features, try to avoid custom sizes and designs as they can cost you an arm and a leg.
By standardizing rather than customizing, you can significantly lower your costs. Don’t hesitate to research online or ask your contractor to find out what’s standard.
The Bottom Line
Don’t let inflation stop you from creating the home of your dreams. By pairing a home improvement loan with the money-saving tips we listed above, you can bring your vision to life.
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