Why Building Material Costs Continue to Affect Remodeling Budgets

Materials

Homeowner insights  •  October 2026  •  Pekel Construction & Remodeling

Homeowners considering a remodeling project understandably want to know why construction costs remain elevated. Recent economic data show that the prices of materials and other construction inputs continue to influence project budgets.

In an October 2026 analysis for the National Association of Home Builders (NAHB), Jesse Wade reported that building material prices rose 5.5% over the preceding year through September 2026—the largest year-over-year increase since December 2022. The broader index of goods and services used in new residential construction rose 10.3% over the same period.

The report identifies substantial differences among categories. Softwood veneer and plywood prices, for example, increased 15.9% year over year, while construction-related service input prices rose 11.3%. These measures track national price trends for new residential construction; they do not directly measure the price of an individual remodeling project.

For a homeowner, this reinforces the value of careful planning, detailed specifications, thoughtful material selection, and a clearly defined scope. Understanding where costs originate can help make budgeting decisions more informed and realistic.

Homeowner takeaway: A well-defined scope and realistic budget are particularly important when input prices are changing.

Original research & attribution

Building Material Price Inflation Nears Four Year High
By Jesse Wade  |  October 15, 2026
Source: Eye On Housing, National Association of Home Builders (NAHB)

This feature is original commentary and a summary of findings reported by NAHB; it is not a reproduction of or endorsement by NAHB.

Accessory Dwelling Units: A Growing Remodeling Opportunity

ADU

Homeowner insights  •  October 2026  •  Pekel Construction & Remodeling

Accessory dwelling units (ADUs) are gaining more attention as homeowners look for ways to add flexible living space. An ADU might be a separate small residence or a converted portion of an existing home, depending on the design and local requirements and restrictions.

According to the National Association of Home Builders (NAHB), 24% of remodelers surveyed reported starting an addition intended for use as an ADU during the previous 12 months, while 23% reported converting existing space. Those categories should not be added together because a remodeler may have undertaken both kinds of projects.

NAHB also found that ADU activity was less common in the Midwest than in other regions. Among reported ADU projects, 62% cost $150,000 or more. These are national survey findings, not estimates for a specific project in the Wauwatosa area.

For homeowners, the practical question is whether additional living space can improve the way a home serves changing needs. Before moving forward, it is important to examine zoning and permitting requirements, available space, utility connections, accessibility, and overall project cost.

Homeowner takeaway: Start with the intended use of the space and confirm local requirements before investing in a design.

Original research & attribution

A Quarter of Remodelers Started ADUs Over Past Twelve Months
By Eric Lynch  |  October 23, 2026
Source: Eye On Housing, National Association of Home Builders (NAHB)

This feature is original commentary and a summary of findings reported by NAHB; it is not a reproduction of or endorsement by NAHB.

You Don’t Need a Different House. You May Need a Better One.

Thoughtful design can make a world of difference in loving your home

There comes a point when a house can start to feel out of step with the way you live.

Maybe the kitchen feels cramped every time family gathers. Maybe the primary bathroom no longer works as well as it once did. Perhaps you need a better place to work from home, more useful storage, a first-floor bedroom, or a layout that will serve you well for the next twenty years.

When that happens, many homeowners start asking the obvious question.

Should we move?

Sometimes, moving is the right answer. But if you already like your neighborhood, know your neighbors, enjoy your property, and feel connected to the home itself, there may be another option worth considering.

You may not need a different house.

You may need a better version of the one you already have.

START WITH WHAT YOU ALREADY VALUE

A home is more than a collection of rooms.

Over the years, it becomes connected to routines, relationships, memories, and a sense of place. You know how the sunlight moves through the house. You know which room everyone naturally gathers in. You know the walk to the coffee shop, the route to work, and which neighbor will bring in a package when you are away.

Those things have value.

When homeowners begin considering a move, they often focus first on what their current house lacks. That makes sense. The frustrating parts are usually what pushed the conversation to begin with.

But before deciding to leave, it is worth identifying what already works.

Do you love the location? The lot? The architectural character? The school district? The scale of the neighborhood? The way the home feels?

If the answer to several of those questions is yes, remodeling may offer a way to keep what you value while changing what no longer serves you.

The goal is not simply to make the house newer.

It is to make it work better for the life you are living now.

YOUR NEEDS CHANGE, EVEN WHEN YOUR ADDRESS DOESN’T

The home that worked well ten or fifteen years ago may not fit your life today.

Families change. Careers change. Children grow up. Parents get older. Entertaining habits evolve. People cook differently, work differently, and use their homes differently than they once did.

A formal dining room that rarely gets used might become valuable space for a larger kitchen. A second-floor primary bedroom may eventually feel less practical than a first-floor suite. An underused porch could become a comfortable year-round living space. A basement might have the potential to become a useful extension of the home rather than simply storage.

These changes do not necessarily mean the house has failed.

They simply mean the house may need to evolve with you.

Good remodeling starts by looking beyond the immediate problem.

A thoughtful design process asks not only, “What bothers you today?” but also, “How do you want to live here five, ten, or fifteen years from now?”

That distinction matters.

It is the difference between replacing something and improving something.

GOOD DESIGN IS ABOUT MORE THAN APPEARANCE

Most homeowners naturally begin with what they can see.

Cabinetry. Countertops. Flooring. Fixtures. Lighting.

Those choices matter, but they are only one part of good design.

The more important questions often come earlier.

Should a wall move? Would a doorway work better somewhere else? Is there a way to improve natural light? Can circulation through the house be simplified? Should storage be built into the architecture instead of added later? Is an addition really necessary, or can the existing footprint be used more intelligently?

A successful remodel can make a home feel larger without dramatically increasing its square footage. It can make daily routines easier without calling attention to itself. It can preserve the character of an older home while improving comfort and function.

That is where experienced design becomes especially valuable.

The best solution is not always the most obvious one.

Sometimes the extraordinary result comes from solving an ordinary problem exceptionally well.

REMODELING COSTS MONEY. THE BETTER QUESTION IS WHAT YOU RECEIVE IN RETURN.

For many homeowners, the biggest obstacle to remodeling is cost.

That is understandable.

If you have not completed a significant renovation recently, the price of high-quality remodeling can be surprising. Construction costs have many components, including skilled labor, materials, design, engineering when required, project supervision, permits, temporary protection, specialized trades, and the countless details necessary to integrate new work into an existing home.

Unlike new construction, remodeling also requires working carefully around what is already there.

Existing structures are not always perfectly square. Older homes may contain conditions that cannot be fully understood until work begins. New materials must often be blended thoughtfully with original details.

All of that requires time, planning, and experience.

For that reason, evaluating a remodeling project only by its price can leave out an important part of the decision.

The better question is whether the value of the improvement exceeds the cost for you.

That value may include more than resale.

It may be the ability to stay in a neighborhood you love. It may be a kitchen that finally works for the way you cook. It may be the confidence that your home can support you as you get older. It may be the enjoyment you receive from the space every day for the next fifteen years.

Those benefits are harder to place on a spreadsheet, but they are very real.

THE EXPERIENCE MATTERS TOO

A remodeling project does not happen outside your life.

It happens in the middle of it.

That is why the process itself deserves almost as much attention as the finished result.

You want to understand what is happening, what decisions need to be made, and how those decisions affect the project. You want clear communication. You want someone who listens carefully and can explain why one approach may be better than another.

You also want confidence that the people working in your home respect both the project and the fact that it is your home.

This is where a more personal remodeling experience can make a meaningful difference.

A strong relationship between homeowner, designer, and builder creates room for better conversations and better decisions. Questions can be addressed before they become frustrations. Tradeoffs can be discussed openly. Expectations can be established clearly.

The journey through your project is as important as the destination.

When the process is handled well, the experience itself becomes part of the value.

A BETTER HOME MAY ALREADY BE AROUND YOU

If you have lived in your home for years, it can be easy to see it only as it is today.

But experienced design often reveals possibilities that are difficult to recognize on your own.

An awkward floor plan may have a better solution hidden within it. A dated room may have more potential than it appears to. An addition may create exactly the space you need while still respecting the architecture of the original home.

You do not have to begin by deciding exactly what the project should be.

You can begin with a simpler question.

What would make this home work better for us?

From there, design can help turn priorities into possibilities.

If you already love where you live, remodeling gives you the opportunity to preserve what matters while improving what does not.

You may not need to leave the house that has become part of your life.

You may simply need to make an ordinary project extraordinary.

If you are considering how your current home could better support the way you want to live, start with a conversation about what is possible. A thoughtful design process can help you understand your options, your priorities, and where your investment can make the greatest difference

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In 1978, the use of lead paint was officially banned from residential construction. Before that, however, lead paint was used in more than 38 million homes, according to the U.S. Environmental Protection Agency (EPA).

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Why is “Green” remodeling becoming more relevant?

Wood-Duck-1Green remodeling is often referred to as the use of sustainable building material resources. Popular examples of these materials are found in formaldehyde free plywood and particle board used in cabinet construction and counter top substrates, flooring alternatives like cork and bamboo, building materials including paint, finishes, and carpeting with low volatile organic compounds, (VOC’s), and lumber harvested from certified sustainable forests. However, green is much more than the raw materials used in remodeling construction.

The relevance of green remodeling is driven by many influencing factors; consumers’ acknowledgement of their ecological responsibility and stewardship, depleting natural resources, savvy marketing by manufacturers, and an expanding knowledge base and availability of alternatives to traditional building materials. For now though, it is the cost of and the conservation energy and water that is creating the most profound impact on the relevance of being green.

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