As we have discussed in our work-from-home blog post, the pandemic has resulted in many people staying at home for a majority of their time. This new reality has provided a lot of time to think about the kitchen remodel you have been putting off for awhile. Or perhaps you finally have the time to decide on what kind of a porch you want for your backyard. Nonetheless, 2020 has been a booming year for many contractors and the demand for renovations has only been growing. This development has brought many companies to the forefront and also causing shortages in materials.
Booming Industries
As of October 26th 2020, a company called Poolcorps that sells swimming pool supplies and outdoor amenities has seen their stock at its highest point since 2003. Many other similar home amenities have been going through the same spike in their sales. With many staying at home for work and school, families are not going out to meet their wants and needs for physical exercise, eating out, and vacationing for their annual holiday. This has led to additional available funds that can be allocated towards potential house projects. These projects include improving home kitchens, adding room for gym equipment, and renovating their basements/backyards for a private space meant for leisure activities. Companies like Home Depot and Lowes have both seen a spike in their sales in the past year, with many people buying supplies for renovations and DIY projects.
Shortages
A consequence of widespread renovations has been a relative shortage of contractors and materials. According to the National Association of Home Builders, lumber prices are up 134%. This has been a result of increased demand and natural disasters (Westcoast wildfires, Hurricane Laura, etc.) causing a shortage in available lumber. The recent renovation boom has also filled out the calendars for most contractors. Does this mean that you are out of luck for not cashing in earlier? Absolutely not. It would be wise to sift through as many possible bids for your projects and to calculate a doable budget. Given that there will be long term effects from the pandemic, there will be a lot of opportunities for investing into personal house improvements and renovations within your real estate portfolios.
East Bay Investment
Our firm is always keeping it’s finger on the pulse of the house remodeling market. We take into account the shortages mentioned above and use that to plan ahead to get our projects done within a realistic timeline. Our network of contractors and resources has allowed us to attend to our properties in an efficient manner, while also making sure we get the best quality output of labor. Give us a call today if you are looking to invest into our current property renovation proposals!
510-344-6368
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