The economy continues to improve after the “great recession” and with the improving economy come increases in the cost to remodel.

The cost to remodel and renovate dropped dramatically during the recession; as much as 30% when both material suppliers (Home Depot, Lowes, etc) competed for your business and contractors and builders offered rock bottom prices for their labor.  The result from these difficult economic times was a significant reduction in the cost to remodel.

Now that the economy is recovering both material prices and labor for workers has increased.  The biggest increase has been in labor costs for remodeling.  Home additions are increasing in price as well as builders and contractors become busier and can be more selective on the projects they bid on and the projects they accept.

So what does this all mean for you?  It means that you will need to shop harder to find deals and manage your budget for your remodel.  Not all contractors and builders have increased their prices and there is still a wide spread between the price that contractors charge for the same remodeling project.  Contractors charge differing amount- not always because of differences in quality – but because of how comfortable they are with your project, how your project fits in with the type of work they like and want for their company, the overhead costs of their business and finally the profit they want to make on your project.