Inflation Hurting Homeowners’ Renovation Projects
Inflation is making renovations less attainable for homeowners, according to a report by Discover Financial Services.
The digital banking and payment services company issued a survey of 1,500 American homeowners to understand how inflation and higher interest rates have impacted their sentiment around investing in their home versus moving to a new one.
Nearly three-quarters of homeowners are finding projects to be more expensive than originally budgeted, causing some to reconsider their renovation plans.
Fifty-nine per cent of survey respondents said they are postponing their projects, while 26 per cent have decided to reduce the scope of their projects in the face of increased costs.
However, there remains strong demand for home renovation as 79 per cent of those surveyed still prefer to renovate than move.
When asked what home improvements to undertake, homeowners are most interested in conducting routine maintenance, though the number of people wanting to do it decreased by four per cent compared to the 2022 survey. The number planning to remodel their existing bathroom jumped five per cent.
Similar to last year’s findings, 80 per cent of those surveyed are making improvements as a way to invest in their home. Eighty-two per cent are planning to make cosmetic changes to their home to better fit their style and needs.
An interest in making ‘green’ or eco-friendly renovations to homes was emphasized in the results, with 59 per cent of homeowners fitting them into their renovation plans. Nearly half of respondents said they were doing so because they are environmentally conscious, while 68 per cent aim to save money on their energy or water bill. Interestingly, Gen Zers and millennials were found to be most likely to make green updates to their homes at 67 per cent, versus 56 per cent of Gen Xers and 47 per cent of baby boomers.