Tackling Home Projects with Your Unused Vacation Funds? Great! But There’s a Catch.

Along with the general disruption we’ve all experienced during the current pandemic, one unexpected twist has been that most of us have cancelled our summer vacations. With many destinations on lock down, restrictions on travel, and general uncertainty regarding the safety of summer trips, many of us have a few extra bucks sitting around that we won’t be spending on an OBX house rental or family trip to Florida. So, what might you be considering doing with those funds?

That’s right… home projects! But there’s a catch.

According to online remodeling and home design website, Houzz, there has been a 58% increase in project leads coming out of the site in June alone. Pair that with the fact that many homeowners were already tackling some kind of home update once the spring shutdown began and you have a very busy contracting community. Here are just a few more examples of the home renovation/project boom this year:

• Those working on outdoor spaces have seen a 3x increase in demand from a year ago, especially for pool and spa professionals.
• Landscape, deck, and patio contractors are seeing double the work from a year ago.
• DIY projects are also surging (just look at the Google search trend below for “How to build a Firepit.”

And here’s a search trend increase for “How to build a Shed” right around the time when it became clear that the stay-at-home thing was going to be for much longer than expected.

So, where’s the problem? Keeping the economy booming and investing in something connected to our property values is always worth the time, right? It sure is. So, what’s the downside?

Depending on the scale of your project, you could experience a massive materials shortage or significant price increase. Want a universal example? Let’s talk lumber.

Just like the Great Toilet Paper Shortage of March 2020, the lumber shortage that we’re currently experiencing is simply a result of the boom in home projects. The price of pressure-treated lumber has increased by 250% with good ‘ol’ plywood right behind with a 130% increase. One article states:

“Once boards and wood became scarce, it had a knock-on effect on other building materials, such as engineered panels, windows and doors. And contractors unable to find pressure-treated boards snapped up composite decking.”

Nearly all home renovation, addition, and upgrade projects are using wood of some kind so… you get the idea. Just consider the lumber issue in relation to the surges in these home renovation projects:

• With more people cooking and eating at home, kitchen and bath projects are up 40% in demand year-to-year.
• Larger builds such as home extensions and additions are up 52% with privacy projects such as fences and fencing repairs up 166%.
• With so many professionals working from home, home office conversions and portions of general house improvements can all translate into tax-deductible expenses. It’s a win/win for homeowners and the pandemic is motivating homeowners to tackle new home office projects. Yet all at the same time.
• Accessories and add-ons are also experiencing shortages as the seasons change (Did you try to order an inflatable kids' pool this summer or buy an outdoor patio heater this month? Good luck finding one at Lowe’s or Home Depot!)

As one of many ripple effects of COVID-19, the boom in home projects brings with it both excitement and challenges as many deal with the reality of increased materials costs, over-extended contractors, and permitting delays at the county or municipal level.

So, what are we to do with our list of home projects and unused vacation budget?

First things first. If you have a project you want to tackle at your home, go for it! Everyone’s sense of time is a little bit wacky this year (and it’s not like you’re going on that trip to France anytime soon), so you might as well keep moving ahead with your project. It’s just going to take a little bit longer than you thought and you’ll probably have some more delays than usual with your contractors and the permit process.

Second, be flexible with your budget and materials expectations. As some materials are right sized in the market and others continue to be scarce, be creative with your design expectations and over budget for some of the materials that are in the “must have” category.

Third, the whole process can go faster and smoother by spending more planning time up front to map out your project. Working with an interior designer can alleviate your stress as you try to figure it out yourself or lean entirely on a contractor that may be completely overwhelmed. You can go from ideation to planning to accessories with your interior designer while you wait for permits and proposals, allowing you to spend less time worrying and more time planning the finished result (or the next project).

Home projects are up. Contractors are busy. Everyone has a few projects that they’d love to tackle this fall. Great! Don’t let the bumps in the road deter you, just adjust your budget expectations and timeline accordingly and have someone on your side that can help you get creative with the how.

If you’re trying to tackle your outdoor makeover, sunroom build out, or new addition, I can help. This isn’t the first time we’ve dealt with scarcity and uncertainty and it won’t be the last… but that doesn’t mean you can’t complete the project you’ve been dreaming of.

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Statistics from:

https://www.cnbc.com/2020/09/25/always-expect-home-remodeling-to-cost-50-percent-more-take-50-percent-longer-finance-expert.html

https://www.cnbc.com/2020/08/07/pandemic-home-remodeling-is-booming-what-your-neighbors-are-doing.html

https://www.burlingtonfreepress.com/story/money/2020/09/15/whered-wood-go-lumber-latest-covid-victim/5794170002/

www.trends.google.com

https://www.nytimes.com/2020/08/14/realestate/coronavirus-home-improvement.html