HELENA — People who have the money spare no expense for remodels or flipping homes, but we're finding out in this economic climate, Montanans are doing what they can to save.
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"We are noticing some changes in renovations. Mostly we're seeing them in flooring, lighting fixtures, bathrooms," says real estate agent Heather Lay. "Where they maybe had planned to put in a custom tile shower, now turning into shower insert with shower rod and curtain rod."
Lay isn't alone. General contractors taking on the remodel jobs say the fluctuating cost of materials can make it hard to give customers accurate estimates.
It's an issue that could be compounded by potential tariffs. According to the National Association of Home Builders in 2024, $14 billion worth, or about 7 percent, of materials used in building new single and multi-family homes originated from outside the United States.
"If it's not just a two-week to one-month job, it can change a lot between when you start a project and when you're finishing it 6 months later," says Helena area general contractor, Mike Murphy.
Murphy and Willie O'Brien are general contractors who often tackle jobs together. Despite price spikes, remodel work is in high demand.
According to O'Brien, finding work isn't a problem. "We always have remodels going on, whether that's a bathroom, a kitchen, or an entire place."
So while the work continues, some different budgeting trends are emerging across the spectrum. Especially with mortgage interest rates hovering near seven percent for the last few years, some would-be buyers and sellers are opting to stay put.
"Instead of selling their home and buying the home that would then offer those amenities and features that they're looking for, we're seeing people take on renovation projects that would then replace that sell and buy," says Lay.
Sometimes those bigger jobs are tough to afford all at once.
"They can complete one phase first, recover, recoupe a little bit, then go into another phase of it," Murphy says.
If a budget is tight, a common-sense approach wins.
"What needs to be done, let's start there," quips Lay.
