MODERATE IMPACT

Will home renovation and remodeling costs go up because of the Iran war?

Quick answer: Home renovation costs are rising fast. Steel prices are up as energy costs surge, copper (42% used in U.S. construction) faces supply disruption from sulfur shortages, and aluminum costs are climbing since the Gulf produces 9% of global primary aluminum. Lumber transport costs are increasing with diesel at $4.86/gallon. Contractors may raise labor rates to cover their own fuel costs. If you're planning a renovation, lock in material prices now and consider phasing the project to spread costs.

Last updated: 2026-03-13

What’s Happening

Home renovation costs are rising fast. Steel prices are up as energy costs surge, copper (42% used in U.S. construction) faces supply disruption from sulfur shortages, and aluminum costs are climbing since the Gulf produces 9% of global primary aluminum. Lumber transport costs are increasing with diesel at $4.86/gallon. Contractors may raise labor rates to cover their own fuel costs. If you’re planning a renovation, lock in material prices now and consider phasing the project to spread costs.

What You Can Do

Check our complete money-saving guide for detailed tips on reducing costs across all categories.

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