Room Addition Cost - 2023 Inflation Protection

Protective Strategy
California Room Addition Costs
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If there was any doubt before that inflation was here for a prolonged season, it should be clear now. As prices walk up the ladder due to the deflating U.S. dollar, Truplans Inc has been closely monitoring construction costs, market trends and homeowner sentiments. Although we are not a financial advisory company we do recognize a protective strategy being adopted by savvy homeowners.

As prices increase at a rate much higher than we’ve ever experienced you might expect that residential construction, home renovations and remodeling might take a back seat and begin to slow. Although, this is partly true there is something else we are beginning to hear from our clients. Homeowners are recognizing that putting their savings into their home is one way of protecting their assets from a bearish market. They seem to be trusting the stability of their home value over stocks, bonds and other investments more and more. Of course, this is not the only motivating factor. Most of our clients have a primary goal of enlarging their home for needed space or returning parents to the safety of the family home. ​

​It is, however, noteworthy that during the recession that hit in 2008 we experienced the same hesitation by homeowners to launch larger projects. Since loft additions and other high ceiling conversion projects are smaller investments that gain square footage quickly we continued to grow through 2009 to 2012 while other categories of construction were in decline. Then between 2013 and 2016 we experienced a noticeable increase in new projects due to what we feel was pent up demand. 2017-2020 were growth years due to a health economy. We are merely sharing our experience in the California market. Our conclusions are not based on any statewide or official market data, but on our direct experiences in serving homeowners, home buyers, remodelers, and general contractors.

As we enter into 2023 the future may have a higher level of uncertainty once again, but one thing is for sure; people still have growing families, they still want to bring parents and loved ones closer to home when the time calls, and we are still being asked to prepare architect and engineer plans for their home improvement projects.
 
Get Informed
Being informed is always a good thing. Whether you are considering a home renovation, remodel or room addition now or sometime in the future, getting a planning estimate is always the first step. We can also help you get construction quotes by licensed general contractors as well.

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