Did you ever think that the pandemic would make such a big impact on so many industries? Well, its actually a no brainer that everything gets effected, and its crazy how lives get turned upside down.
Our business like many others is feeling the effects of the pandemic. And so are our clientele.
When you put so much work in getting the design & drafting plans, hours of planning, and meetings, obtaining all the proper permits, bank financing, budgeting all your materials, and then look forward to the day when you able to start construction on your renovation, addition, etc. Then you get news your budget is about to be hit a little harder. In just a few months the price of lumber has gone up 50 per cent on a lot. No one ever expected to have to budget for an increase but, it can happen. Question is, will the price come down soon? Not likely according to the Canadian Home Builders' Association.
The huge demand for new construction, a housing shortage and a short-fall in lumber supply are all reasons behind the high price, oh, yeah and the pandemic doesn't help either.
Supply and demand aren't the only factors at play though, a changing demographic, and millennials have been a driving factor.
As a result of the changing prices, homes are costing tens of thousands more than usual, ex. a detached 2,500 square foot home can cost around $30,000 more due to lumber prices, but an average home or renovation is about $10,000 more.
Lumber is not the only item that is going up. Steel and concrete are also effected during the pandemic. Almost everything is going up some, but lumber is the most effected. The CEO of the association thinks the lumber market will continue to stay high for at least "a couple of years."
We all have to work together during these hard times. Expectations of cost increases, maybe the norm for awhile.