Americans Delaying Home Renovations Amid High Borrowing Costs
Americans are starting to delay or seek alternatives to their home renovation plans due to the persistence of high borrowing costs. Data reveals that consumers are shifting away from major renovation projects and opting for more affordable options, such as DIY projects. For example, data from John Burns in April indicated that consumers are exploring cheaper alternatives in categories like cabinets, flooring, lighting fixtures, and countertops.
High Costs Leading to Delayed Projects and DIY Solutions
– Consumers are finding major renovation projects to be too expensive and are turning to DIY solutions.
– A homeowner in Michigan shared that replacing a shower stall could cost around $1,000, excluding labor costs.
– To stay within budget, the homeowner joined DIY Facebook groups for suggestions and was able to repair the shower stall for only $25.
– Data from John Burns shows that 36% of consumers are postponing projects, while 30% are cutting back on spending due to high prices of building products and labor costs.
Future Positive Outlook for the Home Improvement Market
– Experts predict that the current slowdown in home renovations will not last indefinitely.
– Two key catalysts are expected to positively impact the market: strong household wealth and the aging of homes.
– Strong household wealth points to potential large discretionary spending in the future.
– Approximately 50% of homeowners are residing in homes that are 40 years old or older, indicating a need for replacements and repairs within these homes.
– This increasing demand for essential structural projects is likely to boost the Home Improvement Market in the coming years.
Hot Take: Americans Embrace DIY and Delay Renovation Plans Amid High Costs
Americans are beginning to delay or find alternatives to home renovation plans as high borrowing costs persist. The shift towards more affordable DIY projects reflects consumers’ efforts to stay within budget despite soaring prices of building products and labor costs. The current slowdown in home renovations is seen as temporary, with positive indicators like strong household wealth and aging homes expected to drive future growth in the Home Improvement Market.
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