Why the Recent Rise in Canceled or Abandoned Construction Contracts
With the effects of the COVID-19 virus on our economy, the amount of contractors who canceled or abandoned construction contracts is on the rise. According to the National Association of Home Builders (NAHB) the current number sits at approximately 31%.
Some of the factors attributing to this discouraging number are substantial price increase and decreased availability of building materials. Additionally, skilled labor staffing shortages are impacted by the skyrocketing approvals of unemployment claims across the state, effectively driving up the hourly wage rates and overall employment costs to construction employers. These problems effectively make completion of construction contracts, impossible to accomplish without a negative impact to the contractors bottom line; good for the homeowner but, bad for the contractor.
When experienced contractors appropriately calculate contract pricing to accommodate fluctuation, homeowners, investors, and landlords can experience up to a 26.1- 36.3% price increase in construction contracts compared to previous years. On the other hand, the opportunity for overall savings with remodeling has great potential as an alternative to purchasing new or used homes in this economy of up to 23% housing price increases.
Also important to note, is the significant increase in value, a remodeled home has over a non-remodeled home. If a homeowner plans to sell, the potential for profit, as well as the appeal a home receives over others on the market significantly increases with home improvements and upgrades.
Reach out to us today to see what possibilities your home has for making beautiful changes and upgrades to increase its value. We have the experience, business ethic and pricing consciousnesses to make your dream home a reality.