Our latest project … Ha, not quite. I snapped this photo in Spain last year.
Take a look at the ceiling! Can't imagine the construction costs on that one.
If construction bids seem higher than they used to, you’re not wrong.
Construction costs are going up.
Clients have heard that “things have gone up,” but when estimates for cabinetry, millwork, or renovations come in higher than expected, it can feel shocking. The truth is, we’re operating in what many in the industry call a wood market — where lumber, hardwoods, engineered wood products and custom joinery are all experiencing sustained pricing pressure.
Getting custom cabinetry like this costs more these days.
Wood is foundational to nearly everything we design: custom cabinetry, built-ins, flooring, ceiling details, doors, trim. Increased global demand for housing, ongoing rebuilding after natural disasters, sustainability regulations, and fluctuating lumber supply have all kept wood pricing elevated and, at times, volatile. When the base material costs more, so does the craftsmanship built around it.
But wood isn’t the only factor.
Several broader trends are driving construction costs upward:
Labor shortages in skilled trades. Talented carpenters, electricians, tile setters, and cabinetmakers are in high demand these days. Fewer workers combined with more projects means labor rates have risen.
Extended lead times. When materials take longer to arrive, projects stretch. Longer timelines can increase carrying costs and labor coordination expenses.
Transportation and fuel costs. Shipping heavy materials — from stone slabs to custom millwork — costs more than it once did.
Tariffs and imported goods pricing. Many finishes and fixtures are sourced globally. Changes in trade policies can quickly affect pricing.
Increased demand for quality and sustainability. More homeowners are choosing responsibly sourced wood, energy-efficient windows, and higher-performance materials. These are worthwhile investments, but they do come at a premium.
OK, so what do we do about it? This is where working with an experienced interior designer truly matters.
At Two Hands Interiors, our long-standing relationships with trusted contractors, suppliers and more allow us to navigate this landscape strategically. We understand how to pursue value without sacrificing integrity. We know when to lock in pricing, when to pivot materials and which partners consistently deliver both quality and fair pricing. Strong industry relationships don’t eliminate market forces — but they can help mitigate surprises and keep projects moving efficiently.
We also advocate for transparency. We walk through estimates line by line, helping you understand where dollars are allocated and where flexibility may exist. Sometimes that means phasing a project. Sometimes it means reallocating funds to prioritize high-impact elements. Sometimes it means finding a creative solution that achieves the same aesthetic with a smarter material choice.
Construction costs may be higher, and the wood market may remain competitive, but beautiful, lasting design is still possible — especially when guided by thoughtful planning and trusted partnerships.
Our goal is always the same: to create spaces that feel layered, timeless, and truly yours — while helping you make informed, confident decisions every step of the way.