California Market - Construction Estimates
Solution #1: Scaling Back To Essential Space
It is the month of October in 2021 and Americans are all starting to feel the pain of inflation. In some cases hyper-inflation. We were told by our government and the Fed that inflation was 5.15% over last year, but that’s not what we’re feeling in real life at gas pumps, restaurants and with construction prices. In the grocery store Beef prices have doubled just in the past month or two.
Inflation & Hyper-Inflation
The Federal Reserve (not actually Federal at all, but private) started out this year telling us that inflation will be transitory. Yesterday they announced that we should get used to it, that inflation is probably going to be with us for a while. Thank you, but we already knew that based on basic math and the evidence around the world that the central bank fiat currency is failing and hyper-inflation is occurring everywhere. Lebanon’s fiat currency has already collapsed with hyper-inflation and the electricity went out to the whole country last weekend for a whole day because the government could not purchase the fuel for the two sustaining power plants.
Upcoming Blog Special: Solution: Alternate Currencies
Construction Contract Prices Go Up – What Next?
Since Truplans Inc secures a good number of construction permits each month throughout California we see the immediate impact of inflation in our industry. Homeowners that received construction quotes at the beginning of the planning process are shocked when the project is requoted based on approved plans. Like a weed growing in your garden you don’t see the growth daily, but come back after 4-6 months and it’s surprising how fast it raised it’s ugly head.
Solution #1 – Essential Space Only
Many homeowners realize that it is still a very good idea to put their cash into their home and property. Home improvement seems to be a much safer place than leaving your money anywhere in the central bank’s declining system. However, inflation has caused budgets to be exceeded and homeowners are scaling back on the scope of their projects. Over the past several months we have seen many major projects scale back their design to essential space only. Many had designed beautiful additions with lots of new functional space. The effects of inflation are very real.
Scaling back means reprioritizing and building only what you need verses what you want.
Scaling back is the first and obvious solution. We will talk about other solutions that are becoming apparent in upcoming blogs.
Disclaimer - Truplans Inc is not a financial investment firm. These blog articles are the opinion of the executives only. Always seek advice from a qualified financial planner when making financial decisions.
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