The True Cost of Waiting: Why Delaying Your Remodel Might Cost More

Tips

Author:

Jake Marsh

May 26, 2025

Delaying your home remodeling project could cost you significantly more money due to ongoing construction inflation, rising material costs, and increasing labor expenses. Current data shows construction costs continue to rise at 3-4% annually, making today's prices tomorrow's "good deal."

You've been thinking about that kitchen remodel for months, maybe even years. Perhaps you're considering a bathroom upgrade or dreaming of finishing your basement into a functional living space. While it's natural to want to plan and save for such significant investments, waiting too long could end up costing you more than moving forward with your project today.

The Current State of Construction Costs

The construction industry has experienced significant cost fluctuations in recent years, and the trend shows no signs of slowing down. According to the latest Mortenson Construction Cost Index, construction costs went up 2.2% in the first quarter of 2025 and are up 3.9% compared to a year ago. This consistent upward trajectory means that the project you're considering today will likely cost more if you wait until next year.

Construction cost inflation typically runs about double the consumer price index (CPI), with long-term construction cost inflation normally about double consumer price index. This means while general inflation might hover around 2-3%, construction-specific costs often increase at 4-6% annually or higher during periods of high demand.

Understanding the Drivers Behind Rising Costs

Material Cost Inflation

Building materials made of copper had some of the highest price growth rates in the U.S. in November 2024 in comparison to the previous year. Key construction materials continue to see price increases across the board:

Lumber and wood products remain volatile due to supply chain factors and environmental regulations
Steel and metal components face ongoing pressure from global demand and trade policies
Electrical and plumbing materials have seen consistent increases due to raw material costs

Labor Shortages Drive Up Costs

The cost and procurement of labor remains a critical challenge to construction, with various industry sources estimating a need for 450,000 to 550,000 new craft workers above the normal pace of hiring in 2024 just to meet demand. This shortage directly impacts pricing in several ways:

Increased wages to attract and retain skilled workers
Longer project timelines due to scheduling constraints
Premium pricing for experienced craftspeople
Overtime costs becoming more common

Supply Chain Complexities

Even as supply chains have stabilized compared to the disruptions of 2020-2022, challenges remain. Persistently long lead times for electrical equipment are adding to the cost of many building and infrastructure projects. These delays can impact your project in multiple ways:

Extended project timelines increase overall costs
Rush orders often carry premium pricing
Storage costs for materials delivered early to avoid delays
Potential design changes due to unavailable specified products

The Real Cost of Waiting: A Breakdown

Year-Over-Year Price Increases

Based on current trends, here's what waiting could cost you on typical remodeling projects:

Kitchen Remodeling Projects:

$50,000 project today → $52,000-$53,000 next year
$100,000 project today → $104,000-$106,000 next year

Bathroom Renovations:

$25,000 project today → $26,000-$26,500 next year
$40,000 project today → $41,600-$42,400 next year

Home Additions:

$75,000 project today → $78,000-$80,000 next year
$150,000 project today → $156,000-$159,000 next year

These calculations are based on current construction cost inflation rates of 3-4% annually, which industry experts expect to continue through 2025.

The Compound Effect

What makes delaying particularly costly is the compound nature of construction inflation. Construction inflation should always be calculated from current cost to midpoint of construction. If you wait two years instead of one, you're not just facing 6-8% increases – you're looking at compounded inflation that could push your project costs 10-15% higher than today's prices.

Hidden Costs of Delay

Beyond direct cost inflation, waiting can create additional expenses:

Opportunity Costs:

Lost enjoyment of your improved living space
Potential decrease in home value relative to neighborhood improvements
Continued inefficiencies in outdated kitchens, bathrooms, or heating systems

Market Timing Risks:

Contractor availability becoming more limited
Having to settle for less preferred timing or scheduling
Premium pricing during peak construction seasons

When Waiting Makes Sense

While the trend suggests acting sooner rather than later, there are situations where strategic waiting might be beneficial:

Budget Planning

If you need time to save for a larger portion of the project to avoid high-interest financing, the savings on interest might offset construction inflation.

Design Development

Taking time to fully develop your vision and plans can prevent costly change orders during construction, which typically cost 20-30% more than original work.

Seasonal Considerations

For certain exterior projects, waiting for optimal weather conditions can result in better quality work and potentially lower seasonal pricing.

Strategies to Minimize Cost Impact

Lock in Pricing Early

Many remodeling contractors can provide pricing that's valid for 30-90 days, allowing you to secure current rates while finalizing financing and permits.

Phase Your Project

Consider breaking larger projects into phases. Complete the most critical or cost-sensitive portions first, such as structural work or major system updates.

Partner with Established Contractors

Working with experienced general contractors who have established supplier relationships can help minimize material cost volatility and ensure better scheduling.

Material and Labor Cost Forecasts

Looking Ahead to 2025-2026

Globally, construction costs are anticipated to rise at a similar rate in 2025, by 3.4 percent, with North America expecting increases of 3.0 percent. Industry forecasts suggest:

Materials: Continued modest increases of 2-4% annually
Labor: Stronger growth of 4-6% due to ongoing shortages
Energy costs: Potential volatility due to policy changes and global factors

The Trump administration's push for higher tariffs is reigniting concerns around higher costs ahead for real estate developers, as a tangible portion of materials—including lumber, cement, and steel—are imported.

Regional Variations

Cost increases aren't uniform across all markets. While national averages provide guidance, local factors significantly impact pricing:

Urban areas typically see higher labor cost increases
Regions with strong population growth face more material demand pressure
Areas with limited contractor availability experience premium pricing

Making the Decision: Act Now or Wait?

Financial Readiness Assessment

Before deciding whether to proceed or wait, evaluate:

Current financial position – Can you comfortably afford the project without overextending?
Financing options – Are current interest rates favorable compared to projected future rates?
Project urgency – Are there safety, efficiency, or functionality issues that justify immediate action?

The Sweet Spot Strategy

The optimal approach often involves finding the sweet spot between adequate planning and market timing:

Immediate planning: Start design and permitting processes now
Contractor selection: Interview and select your remodeling contractor during less busy periods
Phased execution: Begin with the most critical or cost-sensitive elements

Beyond Cost: The Value of Acting Now

Quality of Life Improvements

The benefits of moving forward with your remodeling project extend beyond financial considerations:

Daily Enjoyment: Every month you wait is another month without the improved functionality and aesthetics you're seeking.

Energy Efficiency: Modern kitchen appliances, bathroom fixtures, and insulation improvements can provide immediate utility savings.

Home Value: Strategic improvements can increase your home's value and marketability, particularly important in competitive real estate markets.

Avoiding Future Complications

Delaying necessary improvements can lead to more extensive and expensive problems:

Plumbing and electrical systems: Aging infrastructure often requires more extensive updates when finally addressed
Structural issues: Small problems can become major structural concerns over time
Code compliance: Building codes evolve, potentially requiring more extensive work in future projects

Working with the Right Contractor

Choosing Experience and Stability

During periods of cost volatility, working with an experienced general contractor becomes even more critical. Look for contractors who:

Provide detailed, fixed-price bids that account for potential cost fluctuations
Have established relationships with suppliers for better material pricing and availability
Offer transparent communication about potential cost factors and project timelines
Demonstrate a track record of completing projects on budget and on schedule

The Thornapple Construction Advantage

At Thornapple Construction, we understand the challenges homeowners face when considering remodeling projects in an inflationary environment. Our approach includes:

Fixed pricing commitments to protect you from cost escalation during your project
Established supplier relationships that help minimize material cost volatility
Efficient project management to reduce labor costs and timeline extensions
Transparent communication about market conditions and their potential impact on your project

Taking Action: Your Next Steps

Immediate Actions

Get current pricing: Obtain detailed estimates for your project to establish baseline costs
Understand your financing options: Explore current interest rates and loan terms
Begin the design process: Start developing detailed plans and specifications
Research contractors: Interview potential contractors and check references

Planning for Success

Set realistic timelines: Account for design, permitting, and construction phases
Establish contingency budgets: Plan for 10-15% above estimated costs for unforeseen issues
Consider seasonal factors: Plan construction timing to optimize weather conditions and contractor availability

Conclusion: The Cost of Inaction

While no one can predict future cost movements with complete accuracy, current trends strongly suggest that construction costs will continue rising. The data shows construction costs went up 2.2% in just the first quarter of 2025 and are up 3.9% compared to a year ago, indicating that waiting will likely result in higher project costs.

The decision to move forward with your remodeling project shouldn't be made solely on the fear of future cost increases, but rather on a comprehensive evaluation of your needs, financial readiness, and long-term goals. However, if you're already considering a project and have the means to proceed, current market conditions suggest that sooner is likely better than later.

Whether you're dreaming of a complete home remodeling, planning a strategic home addition, or ready to transform your basement into a luxury living space, the best time to start planning is now.

Ready to discuss your remodeling project? Thornapple Construction offers free consultations to help you understand your options and make informed decisions about timing and investment. Our experienced team can provide current market pricing and help you develop a strategy that maximizes value while minimizing cost risk.

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