Setting A Home Renovation Budget
Rising interest rates and restrictions on obtaining mortgages have seen a massive home renovation boom in Playa Del Rey. Renovations are becoming increasingly popular for homeowners who find their homes aren’t meeting their needs for one reason or another. Rather than risk paying over the odds for a new home, choosing to renovate their current property is becoming a more attractive proposition.
How Big Is The Home Renovation Boom in Playa Del Rey?
According to Harvard University’s Joint Center for Housing Studies (JCHS) predictions, the home renovation sector may reach $30 billion by the end of 2022. Driving this boom are three significant factors; household income, the housing market, and home sale activity. All of these are persuading homeowners that staying put and investing in their current home can be more favorable than reentering the property market in its present condition.
For reference; in 2021 spend increase were;
- 7% in Q1
- 7% in Q2
- 6% in Q3
- 4% in Q4
These figures are set to increase to double figures as spending ramps up.
FOMO (Fear Of Missing Out)
There is no denying that consumer spending in any industry is heavily swayed by spending patterns. FOMO (fear of missing out) is a massive factor alongside the suggestions discussed above.
Consumers are often driven to make big-ticket purchases not to miss out. And if they are seeing others conducting home renovations with success and seeing what is possible with regards to home renovations, then the seeds are already being sown, resulting in copycat behaviors.
However, rising costs and labor shortages are driving up prices. Those requiring immediate home repairs are more easily swayed when it comes to undertaking colossal home remodeling jobs instead of those doing so for vanity or to increase the current value of their home.
What Does This Mean For Playa Del Rey?
On the surface, a home renovation boom doesn’t bode well for home sales. With more homeowners tempted to stay put and undertake repairs, buyers’ purchasing powers are set to decrease.
On top of this, with fewer homes coming onto the market, a push for more new-build homes will drive up demand, thus further increasing home prices and the cost of materials, suppliers, and labor.
That being said, consumer preferences may shift in 2022, leading to a rise or decrease in the need for renovations. Along with consumer trends, there is a good chance that inflation will continue to climb, along with borrowing rates and the cost of building materials. There is still time for home repairs, maintenance, or remodeling that has to be completed to avoid being priced out of yet another market.
While it remains to be seen how 2022 will look for the building trade and homeowners, experienced home builders are on hand to undertake home remodeling projects and newly built properties for the housing market. Contact M.D.H. Builders to find out more.