Why Are Bathroom Remodeling Costs Increasing So Rapidly?

Home remodeling can be an exciting project for homeowners. Remodeling is a costly investment, of course, but it is worth putting your money into. Bathroom remodeling, in particular, may be necessary for homeowners, either to update old plumbing or to make your bathroom look more modern and stylish.

In addition, bathroom remodeling can also raise the value of your home significantly. But what about the cost of remodeling your bathroom? How much money will you be spending on this type of home project? Recently, bathroom remodeling costs have begun to spike upward. And, homeowners are even complaining about the soaring costs of bathroom remodeling’s.

The average cost of a bathroom remodel has gone from around 9,000 dollars to a whopping 13,401 dollars on average since last year. What is the cause of this spike in prices, you might be asking?

Well, there are several factors that drive the cost of bathroom remodeling. I will talk about some of these economic factors and influences here. This way you can properly understand why costs are changing in the bathroom remodeling industry.

The prices of goods and services, like bathroom remodeling, are always shifting. But this rapid change in costs does have an explanation!

What’s Driving Up The Cost of Bathroom Remodeling For Homeowners?

1. Remodeling Has Become More Popular During The Pandemic

Many people have lost their source of income over the past year due to COVID. So, you would think that homeowners would be reluctant to make renovations to their homes during the pandemic.

However, this is not the case at all, according to recent reports, demand for remodeling services is at a steady increase and it is only continuing to rise. Of course, some people have decided to stall home remodeling projects to save money, but the majority of homeowners surveyed have gone forward with their remodeling plans.

Some of this remodeling has to do with renovations to kitchens and adding on extras like weight rooms and study rooms. Still, bathroom remodeling has also been a popular remodeling project during the pandemic. In fact, around a third of remodeling projects were attributed to bathroom remodeling’s.

Because of the rise in demand, and the competition it has fostered within the remodeling industry, the prices of bathroom remodeling have changed. In short, with higher demand, naturally, prices will rise. Furthermore, contractors and remodeling businesses are more inclined to charge higher prices while the demand for their services is still high. This way they can stay financially stable and make a good profit.

Really, the popularity of remodeling projects is a major influence on the rising cost of bathroom remodeling.

2. Materials Cost More Money Now

With a much larger demand for home renovations and remodeling’s over the past year, as you can imagine, the demand for building and renovation materials has increased substantially. And, with more demand comes a diminished supply of goods for remodelers. This led to a higher cost for building and renovation materials.

Some manufactures and sellers of remodeling and building material could not keep up with the demand of consumers. As a result, the price had to be increased. This way profit was netted by the companies selling the material, even when their supply ran low. 

Unfortunately, the prices of these materials will not go down anytime soon. In fact, the demand for building materials for home renovation projects, such as bathroom renovation, will only increase over the upcoming year.

And, the price of materials reflects this, as it is increasing as well. With a higher cost for materials, such as wood, steel, and other metals, obviously, it will cost more to remodel your bathroom fully.

3. Labor Prices Have Gone Up

Labor only accounts for around 30 to 35 percent of the cost for your bathroom remodeling. But this cost can add up quickly, especially with delayed remodeling times and increased labor prices. Again, the demand for remodeling is high even as the pandemic goes on. And, when demand is high for something, the cost naturally increases to meet the rising demands of consumers.

Part of this cost increase has to do with the labor shortage, though. With a bigger work demand, remodelers are spread thin among a larger number of renovation projects, which causes cost inflation. At the same time, though, COVID-related complications have also reduced the workforce. All of this has culminated in increased labor prices for both bathroom remodeling and other similar home projects.

If you are having your bathroom entirely redone or remodeled, the labor needed for your project could skyrocket the cost of your bathroom. So, this is another major factor in the increasing price of bathroom remodeling this past year! Think about this aspect of cost as you hire your contractor or remodeler, though. You might be able to negotiate a more manageable price.

4. People Want Higher Quality Bathrooms

Part of the increased cost could be the demand for higher-quality bathrooms in homes. While we are at home, we might notice more imperfections on our own property. This has led to more people wanting to improve the look of their bathroom and home as a whole.

Still, this is not simply a demand for a more modern-looking bathroom. Really, homeowners want more state-of-the-art and aesthetically pleasing-looking bathrooms in their homes. Especially since they are stuck indoors and in their homes for longer periods of time.

The higher quality the material in your bathroom is, the more it will cost you. And, with the rise in demand for building material, the cost of high-quality bathroom remodeling materials will only continue to go up. This brings the average cost of bathroom remodeling to a higher cost than usual!

5. Social Distancing Has Slowed Down Some Home Remodeling Projects

The longer it takes to remodel your bathroom space, the higher the cost of your renovation will be. Bathroom remodeling costs consist of labor fees, time, and material costs. These costs are only going up, especially with the need for social distancing. Renovation projects were initially slowed down, due to COVID regulations.

Mask wearing and social distancing, while completely necessary, decreased productivity and reduced the working capacity of construction and renovation businesses. You can’t have as many people in your home to work on renovating.

This is changing slowly, especially as the vaccine comes out, people are able to work more safely. But, at the moment, construction companies are not at full capacity like they were before the pandemic. So, it can take more time, and as a result, more money to finish projects.

6. Other Economic and Social Factors Have Slowed Down Bathroom Remodeling and Other Home Remodeling Projects

In addition, to the limitations of remodeling work under COVID restrictions and precaution, the increase of demand for supplies and labor has also slowed down the remodeling process. With less building material, it takes longer for businesses to get the necessary materials for your remodeling project.

Again, the longer the project goes on the more money it will cost you. Without the proper materials, your bathroom project will inevitably be delayed. And, in some cases, contractors and remodelers might be in such high demand that this affects their ability to quickly finish remodeling. With more clients, it will take longer for them to complete the project.

Another thing to consider is availability. Contractors and remodelers with a more manageable price might not be available to you right away. You have to remember that demand is high for remodeling across the country. So, anyone who is offering a lower price will be in even higher demand, especially as bathroom renovation prices soar. 

7. Some Bathroom Remodelers Are Delaying Remodeling’s on Purpose For Profit

Finally, in some cases, remodelers can even purposely delay the project to increase their profits. You do not want to assume that every remodeler or contractor will do this to you. But, there is a strong possibility that this could happen during a remodeling project.

So, be on the lookout for extra charges and costs and clearly state your terms and price in your contract to avoid extra fees! Bathroom remodeling is already expensive enough as it is! You don’t want your remodeling delayed if you can help it.

However, in truth, preparing yourself for the high cost and delay of your remodeling project for your bathroom will save you a lot of grief. Experts predict that you will see a fifty percent increase in the cost for remodeling your bathroom, as well as, a fifty percent increase in the amount of time it will take to complete the remodeling.

This is not news that anyone wants to hear. But if you do a little bit of research and search for the best remodeling business, you can reduce the price by a small amount. Again, though, expect to pay a lot for a bathroom remodeling especially considering all the above-mentioned factors which are upping the price of any type of home remodeling in general!

Kenneth Wilson
March 29, 2021
Bathroom Remodeling, Contractor Tips

Kenneth Wilson

Retired contractor. Currently residing in Southwest Florida. Now in semi-retirement, I write and manage this blog focused on helping home owners make savvy decisions when it comes to finding contractors and getting their projects done.