Despite the rise in mortgage rates, home improvement is still a viable investment, if you have the money. It is a good way to add value to your home and increase your quality of life.
A recent survey by Houzz Inc revealed that the majority of homeowners plan to carry out a home improvement project. Nearly one-third of respondents plan to renovate their homes within the next 12 months. A third plan to hire a professional for the project.
The most popular categories for home improvements involve work outside the home. The top three include security systems, plumbing, and electrical systems.
The entry of private labels and the competition among major vendors has increased. The major vendors compete on price, product portfolio, and premiumization.
The Harvard Joint Center for Housing Studies estimates that the peak in the number of home improvement projects will take place during the first half of next year. While the growth in the number of projects is expected to decelerate to a sustainable rate in the second half, the market is not immune from inflation.
In addition to rising mortgage rates, inflation is also taking a toll on home remodeling. The price of materials has skyrocketed, 400% higher than the pre-pandemic levels. This has led to a slowdown in the growth of the market.
In a time of uncertainty, spending on your home can be a comforting investment. However, it’s important to choose a plan that will pay off over time.