Remodeling boom: Higher prices, some shortages persist

Mar. 15—Sheltering at home brought booming business for home improvement stores and contractors as people spent more time in their houses and eyed things they'd like to upgrade.

"With more people working from home they're looking for flexible space, whether it's for kids doing school work or people working at home or being outdoors in the summer," said Kevin Simmons, who with his brother-in-law Eric Van Eps own Mankato Family Homes.

Rich Weyhe, president of R Henry Construction, said they've been booked with remodeling jobs since last spring and things haven't let up. Many projects, he said, are people upgrading their home rather than looking to buy a different house or build new.

"A lot of people like the lot they're on and the cost of new construction isn't cheap, so they figure they like where they are and they'll do the work," Weyhe said.

Jason Phillips, owner of Phillips Built and a director on the Minnesota River Builders Association, said the demand for work has been great for his newer business, which he started four years ago.

"It's been kind of a break-out year for us. It's been just crazy. We're telling people we're booking remodels for 2022 now."

According to various surveys, more than three-quarters of all American homeowners said they had done some type of home improvement project during the pandemic and more than three-quarters also said they plan to take on a new project in 2021.

Many going big

While many people took the opportunity of more home time to do DIY jobs, such as painting or laying some new laminate flooring, many hired contractors to do more major work.

"The remodels aren't just a bathroom here or bathroom there. People are doing major remodels," Phillips said.

"They're looking at how their home works or doesn't work for them. The dining room table is now the classroom and the spare bedroom is an office," Phillips said.

We are getting a lot of demand for remodeling," Weyhe said. "Quite a bit more this time of year than normal."

He said R Henry has staff who develop remodeling plans, which has added to their business. "There seems to be a little drafting shortage in town so people are calling because we have in-house drafting services."

The list of projects covers most everything inside and outside of homes.

"People are adding additions to their house," Weyhe said. "Some people are even taking the roof off and doing a second story. They're adding on to their garage, finishing the basement, kitchen and bathroom remodels, you name it."

Simmons said remodeling goals remain much the same as in the past, there are just more of them.

"The No. 1 thing we're doing is remodeling the kitchen or main living area where people are spending a majority of their time. They want to open it up, put in new flooring."

Simmons and Weyhe said top on the wish lists for kitchens are bigger islands, more windows, fewer upper cabinets and more open shelving, gray and white colors, quartzite counters, seating and prep areas.

"Also upgrading the lighting is a big thing," Simmons said. "Rather than one central light there's a lot of recessed lighting throughout the room."

He said they're also doing a lot of bathroom remodels and adding a second or third bathroom to homes.

Weyhe said people are also remodeling or adding on to better enjoy their yards. "We're doing a lot of four-season porches and screen porches are popular. They keep the bugs out. We did some bigger-size decks."

Shortages, higher costs

As remodel and addition projects soared, material shortages increased, driven by higher demand and because manufacturers had employees out because of COVID-19.

"There's been some shortages on sheet goods and things," Weyhe said. "But the main thing is just the prices are high. Lumber prices usually come down in the winter but they haven't."

Phillips said material costs are at record highs. "There's no sugar-coating it, it's expensive to build new or remodel. But low interest rates have really helped."

Simmons said material costs won't be going down. "At a certain point this summer material costs were extremely high. But the bigger problem has just been getting materials. There are more problems with shipping and shipping times are longer."

He said shipping issues have improved some this winter. "We're still able to get materials but in some cases we might have to wait longer. There is greater accuracy now in knowing when it's coming, at least."

Contractors say customers usually aren't aware of the true costs of a project when they are getting bids on them.

"Most people underestimate what it will cost for new construction or remodeling," Simmons said. "It's hard for people to keep up with the cost increases. But the historically low interest rates help offset the costs some."