Inflation is affecting homeowners’ desire to undertake home improvement projects according to a survey sponsored by Discover Home Loans, something that may impact housewares and home furnishings purchases that are often made in concert with redecorating and remodeling.
When it comes to housewares and home furnishings purchase drivers, consumers will more likely make associated purchases when they get around to reconstituting their homes than when buying a new home at least under current, high-interest rate circumstances.
In the survey, 59% of respondents said they have postponed home projects while 26% said they would reduce the scope of their projects in the face of increased costs. Still, consumers are interested in domestic renovation as 79% of homeowners surveyed still prefer to update their current dwelling rather than move to a new home.
Under current circumstances, moving is a problematic option. When asked how rising interest rates have affected their intention to purchase a new home, 42% of survey respondents said they are no longer looking to do so and an additional 21% are still looking but are less set on making a purchase.
When asked what home improvements they might undertake, homeowners were most interested in conducting routine maintenance, though the number of people wanting to do so decreased by 4 percentage points compared to a survey conducted a year ago. The number of Americans planning to remodel their existing bathroom jumped 5 percentage points while those wanting to update their appliances increased by 3 percentage points.
Top improvements consumers in the United States want to undertake:
- Routine maintenance: 38%
- Updating appliances: 34%
- Remodeling an existing bathroom: 34%
- Refinishing or replacing flooring: 31%
- Remodeling an existing kitchen: 30%
When it comes to motivation, 80% of homeowners surveyed agree said they would make improvements as a way to invest in their home, and 82% said they would make cosmetic changes to their home that better suit their style and needs. Sustainability was part of renovation considerations as 59% of homeowners said they would make eco-friendly modifications, with almost half of the respondents saying they would do so because they are environmentally conscious, while 68% said they wanted to save money on their energy or water bill. Gen Z and Millennials were most likely to make eco-friendly updates to their homes at 67%, versus 56% of Gen Xers and 47% of Baby Boomers.