Everything is so expensive! (just a vent)

[ronandannette]

I work for a large-volume home builder and this is a total nightmare. Really just beyond anything anybody could have ever imagined. We've got over 100 houses to be built and delivered between now and August and about 150 more under contract for construction before the end of the year - all of them sold 6 months or more ago at prices that no longer support the input costs. We have taken the unprecedented (and unthinkable) measure of cancelling all conditional sales currently in the works and completely halting any further sales until we can get our feet back under us.

Suppliers are just flat-out breaching contract delivery dates and price quotes or cancelling them altogether and there's literally no other sources to turn to. The gravest situation of all is the desperate shortage of plumbing components (ABS pipe and acrylic tubs and shower bases) resulting from a North American resin shortage caused by the Texas ice storms this spring. We can't build houses without bathrooms and it's literally IMPOSSIBLE to get a delivery day for tubs and showers. We had staff members spend an entire day last week trying to on-line shop for plumbing parts at Lowe's and Home Depot; even acquiring a few retail ones would help but nope - not a single one in the entire city. I have no clue where this insane ride will end.

 

[snappy]

Yep, inflation is real. And higher price for a smaller portion really hurts

 

[Mackenzie Click-Mickelson]

Also, there’s a shortage on computer chips which are also used in vehicles among many other devices.

The chip shortage (we were talking about that on another thread) is def. impacting cars. We're car shopping now (go figure although we don't need a car this second). Acer announced the chip shortage would delay their laptops into 2022 for production.

The semi-conductors are a base part of so many things and that's one of the main issues.

 

[ronandannette]

Also, there’s a shortage on computer chips which are also used in vehicles among many other devices.

Yes - MANY other devices. It's just another issue in a long list for homebuilders. Major appliances, almost all of which are computerized in some way now are in very sporadic supply and service parts are almost impossible to get. I have dozens of customers very impatiently waiting with broken down appliances and there's literally nothing we can do to expedite parts - nothing. I myself have been without a dishwasher since February for want of a pump assembly. I'm actually scrapping it (a $1,200 KitchenAid only 2 years old) and buying a new one in a couple of weeks. I'll be taking whatever brand and model is in stock and ready to go out the door.

 

[SandyinMonterey]

On the news the other day, they were discussing the increase cost of lumbar/housing materials and a couple that bought a lot and was planning on building their dream home on it. The builder backed out citing he can't get any lumbar because the larger companies that build all get first takes and he's the little guy. And, if he could get it, it's too expensive and he wouldn't be making any money on the job. The couple decided to sue to get the builder to build it anyway.

 

[Mackenzie Click-Mickelson]

On the news the other day, they were discussing the increase cost of lumbar/housing materials and a couple that bought a lot and was planning on building their dream home on it. The builder backed out citing he can't get any lumbar because the larger companies that build all get first takes and he's the little guy. And, if he could get it, it's too expensive and he wouldn't be making any money on the job. The couple decided to sue to get the builder to build it anyway.

In our area homes which used to take on average 6-7 months (depending on which side of the state line you were on) to build are taking over a year (which complicates building permits which are usually occupancy/permit is around 12 months). In particular lumber contingencies are being added to contracts meaning the builder passes on the cost in some portion to the buyer if their lumber costs increase above a certain amount and ordinarily that cannot be rolled into a mortgage (I mentioned on another thread excavation costs because of all the rock is normal in my neighborhood to be added but now add on lumber). Some buyers are backing out because they can't come up with the extra money up front.

It's def. a no-win it seems.

Wonder if the builder in the news you saw could just take more time and charge the buyers more? Maybe that wasn't even considered in the contract. Wonder if the couple can just go with another builder (even if it will take longer). What is their original builder supposed to do if he can't get the materials ya know?

 

[DisLiss]

It's definitely an exercise in patience right now. Either you cough up the inflated prices, or you wait them out. DH is reworking the shelving in our pantry. He originally intended to buy all new lumber, but now he's using scraps from leftover projects instead. It will be more time and labor intensive, but it will save us a bundle.

 

[notatallmagic]

The optimist in me says that these times can create opportunity, but it takes a little time. For the real estate "fixer upper" market, I'm curious to see when/if salvage materials can become a thing. We have several creative business people in our area that salvage woodwork, doors, and certain building materials from houses and buildings to be demolished. If "new" costs are high, maybe that's an opportunity to re-use awesome quality reclamated materials. It takes time to shake out, but every economic mess creates opportunity somewhere.

 

[SandyinMonterey]

In our area homes which used to take on average 6-7 months (depending on which side of the state line you were on) to build are taking over a year (which complicates building permits which are usually occupancy/permit is around 12 months). In particular lumber contingencies are being added to contracts meaning the builder passes on the cost in some portion to the buyer if their lumber costs increase above a certain amount and ordinarily that cannot be rolled into a mortgage (I mentioned on another thread excavation costs because of all the rock is normal in my neighborhood to be added but now add on lumber). Some buyers are backing out because they can't come up with the extra money up front.

It's def. a no-win it seems.

Wonder if the builder in the news you saw could just take more time and charge the buyers more? Maybe that wasn't even considered in the contract. Wonder if the couple can just go with another builder (even if it will take longer). What is their original builder supposed to do if he can't get the materials ya know?

When it was on the news, they showed their vacant lot and there were many homes that were already built surrounding them. The couples lawyer was with them and more or less saying there is a contract and that the builder is still obligated to fulfill contract. The couple says this is their dream home and they are willing to wait.

 

[happymommy]

Last year I felt like I was spending so much on food, since the kids and I ate in every. single. day. Every day, every meal. I bought a half a side of beef for our chest freezer, and we did a local CSA for produce (both were not cheap, but there was a time when our grocery stores here had little inventory). In addition to that I was buying at least $200 of groceries every week. We also had to buy a new range (a few thousand as it’s high end) and we got a standby whole house generator ($20K all in). So over the past year I felt like I was spending a lot.

Then I thought about it: we didn’t eat out. We took NO trips (I typically go on at least 4 trips a year). We didn’t need new clothes (I lived in sweats and leggings all winter). I didn’t throw any holiday gatherings with the in-laws. My bank account actually grew due to that lack of spending.

Groceries here seem the exact same price as in the past (I just did a Costco food haul yesterday and stocked up on frozen burgers, frozen salmon, 25 pounds of rice, DH is Korean and we eat rice all the time, fresh produce, none of it was any higher priced that I noticed).

Next door neighbors are putting in a pool with a nice shade structure, and the work has been on and off for the past 9 months or so I think. She said the contractor is having such a hard time getting supplies that they hope maybe by this fall it MIGHT be done. The workers come a day or two, then I see no one there for weeks. They have ordered patio furniture well in advance, as they can’t predict when it will come in. It’s not the contractor’s fault; he just can’t get supplies. She said one time they couldn’t get concrete for a long time, plus lumber for the structure took forever.

We have a 2007 Toyota Sienna that I had thought of getting rid of, but kids want to keep it for moving to apartments/dorms. I’m sure now I could get a good price for it, but am keeping the old thing for now.

 

[notatallmagic]

It's definitely a time of mixed experiences.

Like others, our quarantine year saved money on dining out, four cancelled Disney trips, clothes (no school uniforms and my pajama/legging wardrobe for working from home), haircuts (my teen son now does his own!) - so many things! It was a great saving/spending lesson for my teenagers!

The crazy cost of building materials is real, so I'm just so grateful that we were able to renovate my childhood home 2 years ago - we did lots of the work ourselves, and costs for materials have more than doubled. I've loved the trend in our small town of young people returning and fixing up century houses - I just hope that can continue.

Food cost increases in big box store are definitely real; but we shop a local for meat (we even pre-bought a friend's kid's 4H pig); joined a CSA for produce (it's like Christmas every time!), and have an AWESOME garden this year with lots of green, berries, and fresh herbs. The local strawberry place has the same prices, so this week I'll fill half our freezer with fresh, frozen berries. At least in small town midwest USA, if you shop local, food prices are still manageable.

Cars - I keep an eye on my car's value - my 2019 Equinox has INCREASED over $3000 in value over the past year according to kbb.com. I've hardly put any miles on it, but that's CRAZY. And my daughter will NOT be taking a car to college - she doesn't need one, and prices are crazy.

 

[ronandannette]

On the news the other day, they were discussing the increase cost of lumbar/housing materials and a couple that bought a lot and was planning on building their dream home on it. The builder backed out citing he can't get any lumbar because the larger companies that build all get first takes and he's the little guy. And, if he could get it, it's too expensive and he wouldn't be making any money on the job. The couple decided to sue to get the builder to build it anyway.

How is suing him going to help when THERE ARE NO MATERIALS AVAILABLE?!? Do they imagine he's simply making the supply issues up? I despise this attitude in people - thinking if they just bully hard enough they can make things happen. I hope the judge has a lick of common sense and they lose...and have to pay all his court costs.

 

[JimMIA]

On the news the other day, they were discussing the increase cost of lumbar/housing materials and a couple that bought a lot and was planning on building their dream home on it. The builder backed out citing he can't get any lumbar because the larger companies that build all get first takes and he's the little guy. And, if he could get it, it's too expensive and he wouldn't be making any money on the job. The couple decided to sue to get the builder to build it anyway.

If you check the CNBC link I posted above, you'll see the degree of increases in various categories. Some examples, used cars have increased 21%, and lumber has more than doubled in price over the last year -- up 124%!

 

[disneyseniors]

And this is why we need to make things in America. We are far to dependent on goods coming to us that are make in other countries like China. We need made in America. Not only would it be good for our country but it would create MANY GOOD PAYING JOBS.

I heard the other day that the drilling leases for oil/fossil fuel in Alaska were all pulled back. That is not going to help fuel prices. Also killing the pipelines doesn't help. We are now going back to the old way of being dependent on other countries for our fuel. What do you think is going to happen. The prices are going to go up.

The housing market reminds me of what was happening in 2007/2008 before the market crashed. So many people paid too much for their houses and it looks like it's happening again. I'm glad I'm not doing any major renovations or buying at home at this time. I feel bad for those who are.

As far as groceries go I think it has been costing us more throughout the pandemic and it continues. I do think if you shop the sales you can do ok on some items. It helps if you have a freezer so you can buy when on sale and freeze for later use.

I agree 100%. We were independent of foreign oil and self supporting. Now, we are dependent again on foreign oil. What a joke! And naturally everything else goes up too which is going to affect the economy soon. It's a cumulative effect all from the oil situation. Sad.
Also, the housing market in our town is skyrocketing, too. I don't know why. We are very far from any big towns in our state. We live in a non industrial area of lakes and woods and the main industry is tourism. There are few other type jobs around, except for the usual stores, electric, gas, etc. I don't know where these people are going to work? It's a mystery.

 

[mefordis]

Our contractor told us to put our kitchen remodel on hold until costs come down (he’s also a friend). We are getting our front porch stairs replaced with brick, cement walkways replaced with cement, and our driveway re-done (fits 5 cars if we try hard). $35,000.

We are doing the same work, but not cement - pavers. The pavers we are still waiting for and ordered them 6 weeks ago.

 

[tzolkin]

Wow. Did they keep the price and start selling half pints?

Nope, $4 for regular pint glasses. The other breweries in the same town were charging $6-7 (and anything with higher alcohol content was served in a smaller 12oz glass for that price).

It’s a place in the mountains we haven’t been to since last summer, so I’ll see in a few weeks if they have raised prices this year.

 

[tony67]

I was shocked on my first trip to a brewery since March 2019. The cost of a pint went from $5 to $7 in 14 months. That is a 40% increase.

I hear you - I still remember when a pint (Imperial Pint - 20oz US) of Guinness was $3 - now its $6 or $7 minimum - but income has not gone up any where near that amount. I also recall paying 1.78 (Pounds) for a pint in the West or Ireland you can get it for about 3 Euro now on a Wednesday - I think you can pay 7-8 Euro in Dublin depending on the bar.
If I want a craft beer I tend to buy a 1/6 Keg and drink it at home - its about half the cost - but there are all the other expenses the go along with it.

Price of wood has gone crazy in the last year as others mentioned. Purchased some Fence posts last May and they were $25 - this year $31

Lets not even get into the price of cars - the average is now 40K - Ill stick with a low end Subaru for just over half of that.

Thing is - once these prices go up - even when the price of gas etc.. goes down and the "Pandemic" is over - they never seem to go back to the previous price

 

[cvjw]

On the news the other day, they were discussing the increase cost of lumbar/housing materials and a couple that bought a lot and was planning on building their dream home on it. The builder backed out citing he can't get any lumbar because the larger companies that build all get first takes and he's the little guy. And, if he could get it, it's too expensive and he wouldn't be making any money on the job. The couple decided to sue to get the builder to build it anyway.

I saw that story. The builder tried to give the couple their money back because he can’t get materials to build the house. And if he could, the prices are so high now that he couldn’t do it for the contracted amount. They are suing him for something he has no control over. I know the story was framed to make you fell sympathetic to the homebuyers, but it made me sympathetic to the builder.

And of course everything is more expensive right now. The combination of the pandemic, paying people not to work and the current policies of the party in power are a deadly combination.

 

[MillauFr]

And this is why we need to make things in America. We are far to dependent on goods coming to us that are make in other countries like China. We need made in America. Not only would it be good for our country but it would create MANY GOOD PAYING JOBS.

Walmart tried the made in America theme back in the 1990s and is was a miserable flop. You can have two similar products for sale side by side. The American made one would sell for $10 while the imported one would sell for $9. It isn't too hard to figure which one would sell better.

 

[mjkacmom]

I saw that story. The builder tried to give the couple their money back because he can’t get materials to build the house. And if he could, the prices are so high now that he couldn’t do it for the contracted amount. They are suing him for something he has no control over. I know the story was framed to make you fell sympathetic to the homebuyers, but it made me sympathetic to the builder.

And of course everything is more expensive right now. The combination of the pandemic, paying people not to work and the current policies of the party in power are a deadly combination.

My sister started a huge patio project right before covid hit (roofed area, bar, built in hot tub, fire pit, tv’s) and ended up paying double what was in the contract due to materials.