In the wake of the pandemic, we’ve become that much more aware of how construction costs impact the housing market — whether you’re building from scratch or doing a renovation. .
Costs have been on the rise, period. For real estate investors, part of maintaining optimum profit margins is balancing quality, durable building materials with affordability
These are the materials with the highest costs now...and their potential alternatives for more cost-effective solutions.
Lumber
Cost Increase: 377%
Plywood, softwood, and hardwood are all more expensive than they were before the pandemic. We’re talking about a 377% year-over-year increase in prices. And though they’ve begun to even back out, it’s still expensive — thanks to supply chain disruptions, real estate demand, and a renovation boom. The added cost of lumber can add tens of thousands of dollars to a home’s price tag.
Alternative: Reclaimed Wood, Wood Alternatives
Lumber is fairly necessary for some parts of home construction, but there are alternatives you can use to offset the costs. Bamboo, hemp, cork, and composites are all more sustainable and affordable options. There’s also reclaimed wood. Rather than buying new, you can buy salvaged building materials — often at a better price than new stock.
Plumbing Fixtures
Cost Increase: 3.4% (YOY 2019-2020)
The cost of faucets, fittings, and pipes are up, too. The cost of these fixtures largely depends on the materials used. Copper, for example, is one of the more expensive options at $2-4 per foot of pipe. Sometimes more. Even a simple repiping can cost $8,000. Bigger projects can easily reach $20,000.
Alternative: Different Metals and Materials
When it comes to plumbing fixtures, comparison is key. Brass, stainless steel, nickel, PVC, and other piping and fixture alternatives may help reduce costs.
Cut Stone
Cost Increase: 6.3% (YOY 2019-2020)
HGTV taught us to value granite countertops. But with the cost of materials on the rise, you’re better off looking for durable alternatives, particularly for investment properties. Granite prices can vary based on the cut (tile or slab) and color. The cheapest granite option is tile at $5-15 per square foot. The most expensive granite option is a blue-toned slab at $70-100 per square foot. Quartz, another popular stone material, is also pricey at $50 to upwards of $150 per square foot. A marble slab will cost between $40 and $100 per square foot.
Alternative: Laminate, Concrete, Wood
This isn’t your 70’s laminate. Advancements in technology mean that this durable material can mimic stone or wood for a fraction of the cost. If you’re looking for something less traditional, wood (such as butcher block) or concrete countertops are also a modern, attractive option for less than traditional cut stone, particularly in an eco-friendly bamboo.
Iron & Steel
Cost Increase: 25%
Although iron and steel costs have risen, they may be a more affordable structural base than lumber right now. However, that doesn’t mean steel comes cheap. At the end of 2020, rebar cost around $650 per ton. By February 2021, costs were up to $900 per ton. For a concrete pour, that could add not just tens of thousands, but hundreds of thousands to a project’s cost.
Alternative: No Current Standard
There’s no real, widespread alternative to iron and steel on the market. However, engineered lumber and composite metals are growing in popularity among builders.
Wood Flooring
Cost Increase: 15-70% (depending on wood type)
Lumber prices impact the cost of our beloved hardwood floors. Different types of wood cost more, but in general, costs are up. In 2021, you can expect $5-10 per square foot. Harder species of wood, like hickory, walnut, and maple, will be most expensive. Wider planks cost more, too. If you’re looking for cheap hardwood, you’re likely to need a thin plank oak.
Alternative: Engineered hardwood, bamboo, laminate, vinyl, concrete
There are numerous flooring alternatives on the market that can help cut costs. While you may opt for hardwood in part of a home, you can save money on these other materials.
Vinyl planks, tiles, and sheet flooring can cost as little as $0.75 and $5.75 per square foot. Plus, it’s waterproof.
Laminate ranges from $2.50 to $3.75 per square foot.
Bamboo, on average, will cost between $5 and $15 per square foot, including labor. It’s also a sustainable and eco-friendly option, like cork flooring.
Engineered Hardwood ranges from $3 to $13 per square foot, depending on the layers of plywood and the thickness of the wood veneer.
Concrete floors can cost anywhere from $2 per square foot to $30 per square foot. It depends on the level of customization and complexity. A simple concrete floor, however, can be extremely affordable.
