Dealing with Disaster - Hurricane Damages Missourians
An obvious example would be when the price of gasoline soared, but what about something that hits closer to home.
Many have adjusted their budgets to deal with the ever-fluctuating gas prices; and still others might have to reign in their Christmas shopping a little this year. However, there are some items probably not on your Christmas list that could impact your whole year. The price tag for something are getting more expensive. For example, lumber, shingles, insulation and insurance have all gone up in price, or are going.
"The things that tend to be most affected by price right now are the backbone of the house - the cement products, lumber, plywood," said HLW Builders President Rodney Latty. "A lot of the mill work finished materials hasn't been quite as affected. But, like I said, gypsum, concrete, and most notably, recently, obviously, anything that takes diesel fuel to get something to you."
Keith Rice the Lacrosse Lumber Manager said, "The biggest thing Katrina's affecting right now is the price of polyethylene, shingles, anything oil-based that's I guess with the refineries down."
"I just tell people all the time, a lot of times its no one big item that pushes a cost up, its $100 here and $100 there. But, ten of those things is a $1000, and $1000 is a lot of money to me. And, that's the way it is now," commented ??? on how several items add up.
Chances are these trends will continue when the rebuilding starts in the Gulf Coast. Materials could be harder to get.
"They're still cleaning up, I would think. The demand for the lumber and the plywood - that'll come next year as opposed to right now," commented ?????. "And how the mills and industry reacts to that. There's only so much you can prepare for something of that magnitude. It kind of remains to be seen how much that'll make a difference."
However, not everyone is positive there will be an impact.
"It'll supposedly cause shortages and price increases, but who knows when its going to start. Maybe it will, and maybe it won't, like I say, you don't know anything about the business anymore."
But in the construction business you have to try to prepare for it. But how?
"You just have to stay on the phone a lot."
"One thing we've done recently that we normally haven't done - we had a job where we actually bought the material, and we're storing it. We knew we had to have it, there was no doubt about it, we wanted to have it in stock at that price," said ?????????.
This scramble for materials could also have an impact on your insurance bill.
Tia Lindell of State Farm Insurance Agency said, "The fact that there may be an upward pressure on the cost to rebuild may possibly indirectly affect our rates in Missouri because those building costs are going to go up here as well."
That means if insurance companies have to pay more to fix houses anywhere, not just in the hurricane zone, then you could pay more for insurance. But its not just the rising cost of materials or insurance that's making it cost more to buy a home.
"In August to September when the hurricanes started to hit, you started to see gasoline prices go up," said Coldwell Banker Realtor Doc Kritzer. "That's a factor because that's going to be an out-of-pocket everyday expense. So, people were becoming hesitant at that time about buying homes."
Whether its materials, insurance, or the ever-changing price of gas, because of the hurricanes in the Gulf Coast, the Missouri home you come home to for the holidays could be a little pricier.
Another household item that's seen an increase in price is carpet and the padding that goes under it. Mike Luebbert of Carpet Values in Kingdom City said there have been more price increases this year than normal. He said part of the reason is because carpet is oil-based and the products are delivered by diesel trucks.