Inflation and how HBRE is handling it.

Inflation continues to apply pressure to everyone involved in residential construction – homeowners, contractors, tradesmen, supplier…everyone. Supply chain uncertainties, labor shortages, and a decent level of sustained demand are all contributing factors. The resulting impact is such that every element of a residential construction project has become more costly than it was a year ago. Unfortunately, the changes are not a historically “normal” low single digit percentage increases but rather, for some components, much greater. HBRE can’t possibly begin to accurately track or explain away the causes for each material or service type price change so perhaps we’ll share with you just one relatable component example: the 2×4 stud.

The 2×4 stud is used in every new home build and nearly every remodel project. It is also representative of lumber pricing in general. The following chart was created by a building materials supplier of HBRE used to track costs of 2×4’s in recent years.


We’re not sure when the (pricing) roller coaster that started in mid-2020 is going to stop. Yet we do know that much like a roller coaster, riding up steep, sustained inclines can create anxiety and the descent is much more enjoyable.

To mitigate both our risks as a company and yours as a homeowner/customer, HBRE will sometimes price our building materials (i.e. lumber) as an Allowance. We will always offer this as a contractual option. For larger projects requiring a significant bill of materials in a volatile market, however, HBRE will require the building materials to be priced as an Allowance. In this way, HBRE is not left paying for unexpected lumber premiums due to a sudden, unexpected price increase while you as a homeowner are, in turn, able to take advantage of a sudden price decrease. When priced as an Allowance, the price HBRE pays at the point of order is the price you will pay on your project.

If you have a project requirement, let us know by simply clicking here to Start The Process. If there is a fit and we believe we can help, we’ll be sure to go into further detail on our pricing methodology and the additional benefits that it offers to you as you start your new project.


Inflation and how HBRE is handling it.