Increasing Labor Rates. County of Los Angeles minimum wage is now $12 per hour (which is higher than the states minimum), which will eventually be $15 in a couple years. (See Reference) It’s affecting people from the unskilled construction worker to even the experienced project manager. Based on the Bureau of Labor Statistics, you might expect to pay more than that depending on the multiple skill sets you may need for your remodel.
In the county of Los Angeles itself we are experiencing a boom in home renovations keeping skilled labor employed and able to charge employers more per hour because of such demand. The cost for quality and skilled labor increases by month and that will inevitably impact a home renovation budget. You want to work with someone who knows what they are doing and the cost for that expectation has and will continue to increase. The minimum wage has made the days of “affordable labor” a thing of the past.
More Expensive Materials. We’ve also seen increasing costs of labor have also affected building and raw materials. When I first started this business, I was only paying over $2.50 for a 2”x4” from Home Depot – that price today has increased twofold. When you’re building a whole room, that slight increase can turns into hundreds more you hadn’t planned for.
- Plumbing, piping, drains
- Electronics, appliances, mounting equipment
- Lighting, switches,
- Carpentry, flooring, shelving, trim
- Finishing (Plan ahead for this often-overlooked expense, which can nearly double your budget when done at the wrong stage)
Permits, taxes and fees.
Construction costs can also be weighted by the codes or compliance rules governing your project. Whether you want a small upgrade for a patio or a complete overhaul like the Transitional Marina Del Rey Home we did, each homeowner is responsible for complying with local ordinances and city restrictions. Be sure you have an experienced builder who knows how to navigate the world of permits and government government constraints like we do.
Use these variables in construction cost to your advantage. With New Generation Improvements, let us help you assess your options before you make the leap towards home improvement.