If you’ve started pricing out a renovation lately, the numbers might have shocked you. Even small jobs feel like they cost double what they did a few years ago.
So what’s going on? Here’s a breakdown of the real reasons behind rising renovation costs.
- Labor Shortages Skilled trades are in short supply. Many contractors are booked out months in advance, and the demand outweighs the workforce. That drives up hourly rates, especially for experienced crews. The result? You pay more to get good work done.
- Material Costs Are Still High Lumber, drywall, tile, fixtures—nearly every material saw price hikes during the pandemic. While some have stabilized, many still sit well above pre-2020 levels. Global supply chain issues and regional shortages haven’t helped.
- Inflation Isn’t Just a Buzzword It’s hitting every part of the job—fuel, delivery, permits, insurance, you name it. That general cost of doing business gets baked into your quote.
- More Regulations, More Red Tape Depending on where you live, building codes have gotten stricter. That’s a good thing for safety, but it means extra steps and costs—like upgraded electrical panels, insulation, or fireproofing requirements.
- Project Scope Creep Homeowners today want more than just functional upgrades. Open-concept layouts, custom storage, high-end finishes, and smart tech are now common asks. All of that adds time and cost.
- 6. Contractors Are Picky Good contractors are turning down small or tricky jobs. If your project isn’t straightforward, it might come with a premium just to make it worth their time.
What You Can Do
- Plan ahead. Last-minute projects cost more.
- Be flexible. If you can shift timelines, you may get better rates.
- Simplify where you can. Skip custom details unless they’re essential.
- Get multiple quotes. Just make sure you’re comparing apples to apples.
- Be honest about your budget. A good contractor will help you stretch it wisely.
Final Word Renovation costs feel high because they are. But understanding the why can help you plan smarter, budget better, and avoid surprises. The good news? Even with today’s prices, the right renovation still adds comfort, style, and value to your home.
Spend smart—not scared.