On 7/4/2012 we uploaded the most recent pricing data. All subscribers should have received a notification email from RemodelMAX. Some of the pricing trends that RemodelMAX chose to highlight are as follows:
Dimensional lumber costs increase dramatically.
Insulation costs take a big dive.
- Drywall costs stayed flat for this quarter.
- Plywood costs adjust slightly up and down by 5% or less.
- Dimensional lumber costs increased dramatically from 5% to 35%.
- Stud costs rise by 5% to 10%.
- Roofing costs increased by 5% in almost all areas.
- Insulation costs dropped dramatically from 25% to 30% – but keep an eye on your insulation costs since this change may be short lived.
Remodelers report more exterior business, higher prices
By Jonathan Sweet, Editor in Chief
June 5, 2012
Exterior remodeling projects continue to be a steady driver of business, with many remodelers reporting increased work, as well as larger projects over the past year.
The 2012 Professional Remodeler exteriors survey found that 94 percent of remodelers generated at least some business over the past year from replacing siding or otherwise remodeling the exterior of the home. A quarter of all respondents said that exterior projects made up more than half of their work over the last 12 months.
“Clients are tired of their building’s appearance,” said a Wisconsin-based exterior remodeler. “They’re looking for energy efficiency and less maintenance with more curb appeal.”
The trend continues to be moving up for exterior projects, with 34 percent of remodelers reporting doing more exterior work in the past year compared with only 13 percent who reported doing less.
While 53 percent said their level of exterior work was unchanged, it was the third consecutive year that the number of remodelers reporting more exterior work outpaced those reporting a decline.
“Sales are still lagging, but customers seem willing now to entertain the idea of improvements,” said an exterior remodeler from Washington state. “In the past four years or so, the customer has not even been willing to entertain the idea.”
When homeowners do choose to replace their siding, they are usually opting to do it as part of a larger remodel. Only 10 percent of the remodelers we surveyed said their typical siding replacement project involved replacing the siding only. Two-thirds of remodelers said their typical siding replacement project includes replacing the existing windows and 46 percent said it typically includes a new door or doors.
Thirty percent of remodelers said they usually replace the roof when undertaking a siding project and 4 percent said it includes some other type of work. Forty percent said their typical exterior project is usually part of a larger addition or whole house remodel.
Budget a concern, but prices increasing
Clients still are keeping an eye on the bottom line, but prices continue to creep up. For the third year in a row, at least half of remodelers reported an increase in the price of their average exterior project.
“All of our clients are being careful about what they are investing in their homes, but clients are looking to improve the curb appeal of their homes and reduce their overall maintenance,” said a Michigan full-service remodeler.
Fifty-nine percent of remodelers reported a higher average price for their exterior projects over the last year, while only 11 percent said it had declined. Thirty-one percent reported no change.
Nationally, 58 percent of remodelers reported an average project size of less than $15,000 and 13 percent said their average project was less than $5,000. At the high end, 18 percent had an average price tag of more than $25,000.
Those larger projects were most likely to be in the South and West, where 24 percent and 20 percent, respectively, reported average prices of more than $25,000, while only 11 percent of remodelers in the Northeast fell in that category. That’s a reversal of last year, when remodelers in the Northeast reported the largest projects and those in the South and West the smallest. Remodelers in the Midwest continued to hold steady near the national averages.