According to a recent Houzz study, homeowners will continue with their home improvement projects despite inflation and the threat of a recession.
Only 1% of the 4,000 homeowners polled in October admitted to postponing projects until 2022. In contrast, with an average cost of $25,000, 37% finished one and 23% intended to begin one within the following year.
Inflation, economic ambiguity, and a lack of funding for the renovation were the reasons given for project cancellation by those who did it.
The two most popular rooms to remodel were bathrooms (37%) and kitchens (33%), but homeowners also intended to replace deteriorating electrical, plumbing, and heating infrastructure as well as work on exterior refresh projects like painting, replacing doors, and improving porches and decks.
More homeowners are deciding to remain in their current homes rather than move due to rising mortgage rates. The main justification given by those considering renovation projects was to remain in their current residence (63%), which was followed by a desire to remain in the neighborhood (34%), a desire for personalization (32%), and the relative affordability of renovating vs. moving (23%) and a better return on their investment (22%).
“Renovation activity and planned renovation remains strong among homeowners despite various industry and economic headwinds,” said Houzz’s in-house economist, Marine Sargsyan. “Because it has become so expensive to move into a home that meets their current needs, many people are choosing to renovate and improve their current home as a result of factors like limited options for available homes and rising interest rates.”
More than half of those surveyed, according to Sargsyan, stated that they have no plans to move or sell in the upcoming 20 years or more.
37% of homeowners who were asked to list the biggest obstacles to finishing a project mentioned supply chain problems that made it difficult for them to locate the proper goods and materials. Finding the right specialists (35%) and sticking to a budget (27%), which were also on the list.
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