Material Shortage Update: March 2022

The construction industry has been facing several challenges in the recent past, with a major impact being the shortage of materials. Windows have been particularly affected by this shortage, with delays becoming more and more common. Window manufacturers have been overwhelmed with the demand and are unable to keep up with the lead times. As a result, the lead times have increased to 16 weeks or more, making it difficult for construction projects to proceed as planned.

Lumber prices have been relatively stable, but have recently started to increase with the rise in oil prices. The cost of transportation affects lumber prices and it’s estimated that a sheet of plywood may now cost a couple of dollars more. Wood products such as two by fours have also started to increase, but not to the extent of the concrete market.

Concrete prices have seen a significant increase from 2021 to 2022, with prices going up by over 60 percent. A yard of concrete that cost $150 in 2021 now costs around $230, making the cost of block construction more expensive. This has caused the debate on the use of wood versus block construction to become more common.

Another challenge facing the construction industry is the rise in labor costs. With the minimum wage in Florida set to increase to $15 an hour, there is a high demand for labor and not enough skilled workers to meet the demand. As a result, the wages of skilled workers have increased rapidly. A starting construction worker who used to earn $12 to $15 an hour now earns between $18 and $22 an hour. Skilled workers, such as those who are experts in framing, concrete, or drywall, now earn between $30 and $40 per hour. This rise in labor costs has made construction seem out of reach for many people.

However, there is a solution to the financial challenge of construction. Renovation loans allow homeowners to take the future value of their project and write a loan on it. This loan is based on what the house will appraise for after the renovation is completed. Homeowners can then access this money now to complete the renovation. These loans are comparable to a mortgage in terms of rates and payments, making it a cheap source of financing. This allows many homeowners to unlock the future value of their home without losing equity or spending a lot of cash out of pocket.

Home Love Construction is offering renovation loans to those who are interested in financing their construction projects. The process starts by designing the project and then beginning the financing process. Home Love Construction is dedicated to helping homeowners unlock the future value of their home by providing renovation loans at affordable rates.

If you are interested in taking advantage of this opportunity, visit homelove.construction/design to start the design build process. The team at Home Love Construction will work with you to design a project that meets your needs and then help you with the financing process.

In conclusion, the construction industry is facing several challenges, including a shortage of materials and a rise in labor costs. These challenges have made construction seem out of reach for many people. However, Home Love Construction is offering renovation loans that allow homeowners to access the future value of their home and finance their construction projects at affordable rates. If you are interested in this opportunity, visit homelove.construction/design today to start the design build process.

If you found this article valuable, please consider subscribing to Home Love Construction for more updates on the construction industry. By subscribing, you will be kept informed of the latest developments and will have access to expert advice on construction and renovation.