Fairway Roofing & Construction

Current Update

Inflation Rates Rise To 7.5%, The Highest Since 1982: How That And The Labor And Material Shortages

Continue To Impact The Home Improvement Market In 2022

The Covid-19 pandemic, in addition to the ongoing trade labor shortage, has completely wreaked havoc on the home improvement industry over the past few years. With a continued shortage of available tradespeople, and a supply chain that hasn’t yet sorted itself out, supply prices continue to trend upward with no immediate signs of stopping, meaning you should expect your spring home improvement projects to cost more than they usually do.

Household Consumer Prices Continue to Increase in 2022

According to the most recent Consumer Price Index from the U.S. Bureau of Labor Statistics, consumer prices across the economy increased by 7.5% in January 2022, in comparison to the previous year, making this the highest year-over-year increase since February 1982. This jump in inflation and consumer costs is impacting builders and remodeling contractors exceptionally hard.

In fact, the Index reports that home improvement and household furnishing prices climbed faster than

those of other non-house-related goods, including the following price surges:

• Floor coverings: 0.8% month over month, 7.2% year over year
• Window coverings: 1.8% month over month, 16.2% year over year
• Roofing Materials: 5-10%
• Furniture/bedding: 2.4% month over month, 17% year over year
• Bedroom furniture: 1.8% month over month, 13.7% year over year
• Clocks, lamps and decorator items: 2.7% month over month, 6.3% year over year
• Living room/kitchen/dining room furniture: 2.2% month over month, 19.9% year over year
• Appliances: 1.5% month over month, 8.5% year over year

What This Means for Home Improvement and Remodeling Projects

While the labor and materials shortage was already making home improvement and remodeling projects take longer and cost more, the increased inflation rates that we’re now seeing are bound to make things worse. If you’re planning to take on a home improvement or remodeling project in the near future, be sure to account for increased wait times and increased costs. Additionally, since prices are so high, focus on completing projects with high ROI, so the money you’re putting into your home, you can hopefully get back. Projects that are almost always worth your money include kitchen remodels, flooring upgrades and landscaping projects.