Construction Material Costs in 2024: Your Smart Guide to Budgeting for Home Renovation Success
As homeowners across Franklin and Benton County, WA, and beyond embark on renovation projects in 2024, understanding construction material costs has become more critical than ever. Construction costs accounted for 64.4% of the average price of a new home in 2024 compared to 60.8% in 2022, marking a record high for construction costs since the inception of the series in 1998. This significant shift means that smart budgeting strategies are essential for homeowners planning renovation projects.
Understanding the Current Material Cost Landscape
Prices have settled in the last two years, so it’s much easier to budget in 2024 than it was in 2022. However, global and domestic economic factors continue to influence prices. Many construction material prices have increased over the last year, although at a much slower rate than in previous years. Broad inflation in the global economy since 2022 — particularly in building material prices — is largely to blame for the increased construction costs.
Some materials have seen particularly steep increases. Aluminum products, such as mill shapes used in windows, siding, and garage doors, had the steepest spike, increasing 17.9% since April 2024. Aluminum costs have boomed both internationally and domestically, driven in part by supply constraints and new tariffs. Softwood lumber prices jumped 8.6% between April 2024 and early 2025, reversing previous yearly declines.
However, there’s some good news for budget-conscious renovators. Plywood had the largest price drop, falling by 3.8%. Flat glass, used in windows, doors, shower panels, and cabinet inserts, saw a slight decrease of 0.4%. Plastic construction products, including materials such as PVC piping, decreased by 1.9%.
Expert Budgeting Strategies for 2024 Renovations
Successful renovation budgeting requires more than just estimating material costs. Without a detailed budget, costs can spiral out of control. It’s wise to add at least 10% extra to cover any unforeseen expenses. However, many experts recommend even more caution. Stone suggests building a 10% buffer into the budget. Some experts suggest more — up to 25% for owners of older homes. That cash cushion is used more often than not.
Key Budgeting Tips for 2024
Prioritize Your Projects: Make a list of must-haves along with things you want, if the budget allows. Know what you can cut from the list and what needs to stay, no matter what. Focus on projects that offer the best return on investment, such as kitchen renovations, which can recoup up to 80% of the cost.
Get Multiple Quotes: You should get at least three bids for your project. This helps ensure competitive pricing and gives you a realistic understanding of current market rates in your area.
Consider DIY Where Appropriate: In most cases, labor costs can account for more than 30% of the total renovation price. But homeowners with the skills needed to put in some “sweat equity” can often find ways to bring the price down. However, be cautious – “If you don’t have the expertise, you could end up paying between 10% and 40% more”.
Mix Materials Strategically: To save money, try mixing materials. Put hardwood floors in the living room and kitchen, but then use less-expensive flooring options in other areas such as the entryway, bathroom or mudroom. Tile and vinyl are less expensive than hardwood and can help keep your budget in check when used in some areas.
Timing Your Renovation for Maximum Savings
When you schedule your project can significantly impact costs. Because some projects such as adding an outdoor deck or installing new windows are easier to perform during the warmer months, contractors tend to be in higher demand during the spring and summer — and therefore often raise their rates. For indoor projects that can be done in the fall and winter months, scheduling during this time can often result in more budget-friendly pricing.
Working with Professional Contractors
Choosing the right contractor is crucial for staying within budget. When working with experienced professionals like nailed it construction, you benefit from their local expertise and transparent pricing approach. Based in Kennewick, WA, we understand the unique needs of Tri-Cities properties, from navigating local building codes to choosing materials suited for Eastern Washington’s climate. We work with our clients and make sure they know the detailed costs involved in their project before we start the work. From initial planning to execution, we are with you every step of the way, providing innovative solutions, clear communication, and a client-focused approach.
Future Outlook and Planning Ahead
Demand for construction will probably keep those costs elevated throughout 2024 and 2025, according to industry experts. By 2024, prices could be 25% to 28% higher than they would’ve been compared to a pre-2020 trajectory, which will make building a budget-friendly home a real challenge for some.
Despite these challenges, demand for new homes is strong, driven by factors such as a housing shortage in many areas, remote work trends, and demographic shifts. Homebuyers are also increasingly looking for properties that incorporate sustainable materials and energy-saving technologies. This demand for eco-friendly homes allows contractors who embrace green building to stand out from competitors, capturing a growing segment of environmentally conscious consumers.
Making Your Renovation Dreams Affordable
The key to successful renovation budgeting in 2024 lies in thorough planning, realistic expectations, and working with experienced professionals who understand both current market conditions and local requirements. Budgeting for a home renovation starts with choosing your projects, doing research on the costs, and determining how much you can realistically spend.
By understanding current material cost trends, implementing smart budgeting strategies, and timing your project strategically, you can achieve your renovation goals without breaking the bank. Remember, only 1 in 5 homeowners come in under budget, but with proper planning and the right team, you can be among those successful renovators who achieve their vision while maintaining financial control.
Whether you’re planning a kitchen remodel, bathroom upgrade, or whole-house renovation, understanding these cost factors and budgeting strategies will help you make informed decisions and create the home of your dreams in 2024.