The cost of construction is rising and doesn't look like its going to settle down anytime soon. If you are planning to build or renovate in 2018 then you need to adjust your budget accordingly.
Here are some of the reasons why construction is going to cost more in 2018;
- A building boom. There is a building boom in our area, builders are busier then they have ever been before. That means that they have the ability to pick and choose the jobs that they want to take on, gone are the days of pricing jobs low just to stay busy.
- Material costs. Building materials have doubled in price in the last 6 months. That means that the raw building materials could cost you anywhere from 50 to 100,000 dollars more then in early 2017. It has become so bad that there is an actual lumber shortage at most lumber yards for a lot of products.
- Labour. With a bunch of law changes coming from the provincial government and a minimum wage increase the cost of all labour will be going up in 2018. All businesses will have to raise there rates to cover the increase in costs.
- Trades shortage. There is a severe shortage of trades in most areas. Tilers, masons, plumbers are getting harder to secure because they are under such a demand for their services.
- Big Business. Large corporations are buying up smaller businesses and consolidating them so that they have a monopoly. Insulators, concrete suppliers, waterproofers, mechanical contractors are just a few of the trades that are being bought up and controlled by a handful of large corporations. This means that they will be able to artificially inflate the cost of what they provide.
- Land costs. If you are looking to build a custom you are going to have to pay more for your building lot with the hot real estate market.
- Building Code Changes. The building code has had dramatic changes in the last 5 years with the amount of insulation required rising and the overall energy efficiency of homes having to rise. Eventhough this is a good thing in the long run it usually means that it will cost you more money upfront to build.
Whatever you are planning to do in 2018 whether it is building a custom home, renovating or adding an addition be prepared to pay more then you did in 2017. You will have to approach the project with a contingency fund to help offset the costs that are rising so that you don't end up in a situation where you run out of money before the project is finished.
Village Builders Inc.