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    Remodeling Costs in 2023: What the Experts Are Saying?

    It’s a question on the minds of many homeowners: Will remodeling costs go down in 2023? In this blog post, we’ll explore what industry experts have to say about the matter. Some believe that remodeling costs will decrease as more and more homeowners elect to take on DIY projects. Others think that the cost of materials may go down, but labor prices will continue to rise. So, what’s the truth? Keep reading to find out what home improvement industry experts think!

     

    Remodeling costs

     

    There is a Possibility Of a Price Decrease

    In 2022, home remodeling expenses have skyrocketed as people suddenly scrambled to create their dream homes – and some of them weren’t so much ‘dreams’ as they were necessary changes! Fortunately, it seems that the time of such frenzied updating may be coming to a close: some experts are anticipating a noticeable decrease in remodeling costs for 2023.

    It is likely that remodeling costs will go down in 2023. These costs seem to have peaked during 2022 and are already on the decline. With the impending recession, that should actually help those costs continue to steadily decrease. It may not be as inexpensive as we’d all like, but it certainly won’t be as expensive as it has been recently.

    John Stephens, Casago Vacation Rentals

     

    Matthew Roberts quote

     

    Jenna Stark form Happy DIY Home gave us her optimistic predictions for 2023 when it comes to remodeling costs:

     

    “Yes, we will see a decrease in remodeling costs in 2023. Here are some of the critical factors that will contribute to this trend. First, automation has led to a considerable increase in efficiency across many industries. It is especially true in home improvement, with all the different materials, tools, and labor that go into a project. As more companies invest in intelligent building solutions and automation technologies like 3D printing for construction projects, we will see an overall decrease in remodeling expenses.

     

    Furthermore, there has been a growing demand for greener building materials. With concerns about climate change reaching new heights, homeowners are looking for ways to reduce their carbon footprint and save on energy bills. Innovations in green home construction, such as using recycled materials and more efficient insulation, will help minimize remodeling costs in the years ahead.”

     

    And Jenna isn’t the only one who thinks like this. Ryan Gorenflo, manager of a popular roofing company Mr. Roof shares his opinion:

     

    “I think there’s a chance that remodeling costs could go down as 2023 progresses. With fewer people planning to complete renovations due to inflation and the economic situation, the supply-and-demand situation should be a little more manageable for all sides, which will give consumers more of a chance to afford a remodel. Plus, the rush of jobs that were happening following COVID-19 has dried up a little bit, which means there are supplies and availability for upcoming remodeling jobs. It all depends on how the beginning months of 2023 go, but I do expect things to go down throughout the year.”

     

    Martin Orefice quote

     

    “Remodeling costs should as per expectations take a lower dip because the demand against the supply will start to get more concise. “

    Wesley Willoughby, Nashville Real Estate Help

    Why Some Experts are Skeptical About a Drop in Remodeling Costs

    Remodeling costs are on a rollercoaster ride, leaving homeowners wanting to know when they will finally drop and at what cost. Unfortunately, some experts have put the brakes on that runaway train and are less optimistic about a decrease in remodeling costs. They cite many factors such as increased prices of materials and materials availability, instability in the labor market, and other related economic pressures, for their negated expectations.

     

    If anything, I expect remodeling costs to go up in 2023 as new construction continues to pick up. There’s so much of an overlap between remodelers and builders in terms of labor, materials, and consumers’ budgets, so a big boost in new construction is going to make it much harder for consumers to find remodelers to work with. The ones who are left will be able to charge top dollar for their services.

    Adam Rossi, CEO of TotalShield Safety Enclosures

     

    Alex Capozzolo quote

     

    Moving Astute founder, Joshua Haley, commented on the expected remodeling costs of 2023 and you might want to start putting away your pennies!

     

    “I don’t see why they would. In fact, due to the current low unemployment rate and consequent high demand for construction workers, I think it’s more likely that remodeling costs will go up. So if you’re thinking about doing some renovations in the next few years, you might want to get started sooner rather than later“, said Haley.

     

    Scott Chambers from Build Eazy shares Joshua’s opinion:

     

    It would be nice to say that they will, but with the cost of materials increasing and the average labor rate remaining much the same over the next twelve months, the inescapable and unfortunate truth is that remodeling costs, much like everything else, will increase in 2023. It’s a sad incitement of the economic times that we live in, but everyone has to make a living and contractors can’t, and won’t be able to, absorb increasing material costs, which will have to be passed on to their customers.”

     

    Kerry Sherin, consumer advocate at Ownerly, explains how rising costs of materials are going to increase the prices of home remodeling in 2023:

     

    “The cost of construction won’t decline in 2023. For years, the cost of materials used in construction has steadily increased. The rising cost of materials is one of the main reasons why construction costs will remain high. As housing and other building demand increases, construction costs are unlikely to go down.”

     

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    Let’s Talk Numbers

    Remodeling costs in 2023 are a bit of a wild card. While nobody can predict the exact numbers, some experts already have a good idea which direction they’re likely to go in.

     

    Theresa Raymond, a real estate expert at Smoky Mountains Real Estate, says that owner-occupied housing stock expenditures are likely to increase in 2023, even if at a slower rate. Residential remodeling expenditure can fall to peak at around 19.6% in the 3rd quarter of this year, but this will fall to around 15.2% in the 1st quarter of 2023.

     

    The significant rise in home prices and the level of tappable home equity will drive renovation activity in the upcoming year. Other related market measures, such as renovation permits, existing home sales, and retail sales of supplies will also have strong effects”, continues Theresa.

     

    The costs for remodeling and renovation projects are predicted to go down to 10.1% in the first two quarters of 2023 from 17.4% (2022). Slow home sales, price cooling, and rate hiking have pushed homeowners to stay away from remodeling investments as much as possible

    Martin Carreon, Sonoma County Real Estate

     

    average home remodel cost in 2022
    Average home remodel costs in 2022

     

    Bill Samuel of Blue Ladder Development gave us the scoop on remodeling prices in 2023:

     

    “I do believe that labor costs will be lower next year than this year as the amount of construction happening continues to slow down. In fact large production builders have been getting 12-16% price reductions from subcontractors although other production builders have reported 8%-10% in price reductions from subcontractors (there is varying degree of cost reduction depending on the specific location you are operating in). Most independent developers/remodelers haven’t seen this type of price reduction yet however I believe it is a matter of time as things continue to slow down.

     

    Unfortunately I don’t think there will be a huge opportunity for materials costs to go down next year. Over 30% of the total construction materials are imported from China and their strict sero covid policy has continued to challenge supply chains keeping prices higher. However overall demand for construction materials will likely continue to taper off which potentially lower pricing for materials manufactured anywhere outside of China.”

     

    Remodeling costs are expected to decelerate by the second quarter of 2023. Right now, remodeling expenditures have grown by 17.4%. By the second quarter of 2023, we can expect to see them at 10.1%. While this is still not exactly ideal, it is important to note that they are slowing down.

    Nick Mueller, Director of Operations of The Hawaiian Islands

    How to Cut Remodeling Costs in 2023: Expert Tips

    As we approach 2023, remodeling costs remain an uncertainty. But before we panic about the potential of rising prices, there are some measures we can take to help cut costs for anyone looking to do some home improvements. We spoke to a handful of experts and gathered their top tips for making sure you get everything you need for a low price.

     

    You can do a few things to keep your remodeling costs down, regardless of the year. For example, try planning your project well in advance, choosing affordable materials and finishes, and doing some of the work yourself. By being strategic and mindful of your expenses, you can ensure that your remodel stays on budget – even in uncertain times.

    Ian Sterling, founder of Fishlab

     

    There are ways that you can save money on your remodeling project. For instance, consider doing some of the work yourself if you have the skills and resources to do so, or look for materials that are more affordable. Additionally, larger remodeling projects may be eligible for financing options which can help reduce the cost of your project.”

    Shaun Martin, founder of We Buy Houses in Denver

     

    Our experts at Nelson Cabinetry have some tips up their sleeve to help cut your remodeling costs this year:

     

    • Try putting less emphasis on custom cabinetry and instead opt for stock products. Doing so decreases the wait time and the overall cost associated with custom design pieces.
    • If you’re looking to refinish existing cabinets without replacing them, consider launching a DIY project instead of turning to professionals to complete the work.
    • Shop around for every material or service related to the job instead of immediately signing up for the first offer.
    • Make sure to stay away from those costly trends that offer little return on investment.
    • Make sure to budget for all aspects of your project – labor, material, even transportation – and be sure to leave wiggle room in case of any unforeseen issues or increased costs.

    Bottom Line

    As we draw closer to 2023, the conversation about whether remodeling costs will go down seems to be heating up. Some experts predict that the costs will start to decline as supplies and materials become more affordable, while others argue that with contractors doing everything they can to keep up with the demand, it’s unlikely that we’ll see any significant decrease. It remains to be seen what will happen – but one thing is for sure: whatever happens in 2023 is sure to have an impact on your wallet!

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