What Materials Actually Cost in Today's Market
The materials you select for your remodeling project constitute a significant portion of your overall budget—typically 40-50% of total project costs. Yet, material prices can vary dramatically based on quality tiers, supply conditions, geographical factors, and timing. This chapter breaks down what's really driving those costs and how to make informed decisions that balance quality, aesthetics, and budget.
Why Material Costs Fluctuate
Material prices in the remodeling industry are rarely static. Several factors can cause significant price variations over time:
Supply Chain Dynamics
The construction materials market has experienced unprecedented volatility in recent years. After the pandemic-related disruptions of 2020-2021 and the subsequent supply chain challenges, some stability has returned—but material costs remain significantly higher than pre-pandemic levels in many categories.
Tariffs
Current Status (May 2025): The biggest disruption recently was caused by tariffs put in place by the Trump administration. Most of us have been following this news - but essentially in early April a 10% tariff was placed on all US imports. Significantly higher tariffs were placed on China, which many anticipated would drastically impact the cost of many items, since so many good are imported from China.
We wrote a whole post about the impacts tariffs are having on remodeling and have been updating it regularly as things change.
Costs by Project Type
While some readers may work in the industry, many of you do not and so the cost for a 4x8 sheet of plywood is only so helpful. And doesn't provide that much information on how much your home addition will cost. For that reason, we've created articles that explore how much different projects cost, and breakdown where the money is going by category.
Kitchen Remodel Cost Breakdown
Bathroom Remodel Cost Breakdown
Basement Remodel Cost Breakdown
Home Addition Cost Breakdown
If you're considering increasing your livable space, either through an addition or ADU, you might be deciding between a kit or a custom build. Explore this article to learn the difference between the two.
Custom Home Cost Breakdown
Hopefully this has provided some background on how much materials cost, what influences the fluctuation of those materials, and how much your specific project might cost.
Explore the other chapters in this cost guide:
Chapter 2: Home Remodeling Costs: DIY vs Contractor vs Design-Build
Chapter 3: Remodel Cost by Home Style & Project Type
Chapter 4: Budgeting and Financing Your Home Remodel
Chapter 5: Timing Your Remodel — When to Start and What to Expect
Chapter 6: Will Your Remodel Pay Off? Understanding Your Investment
