Americans are delaying home remodeling: DIY movement?
Americans are beginning to delay or find alternatives to home renovation plans as high borrowing costs persist, according to data from John Burns.
Yahoo Finance reporter Dani Romero joins Wealth! to break down the latest trends in the housing market and how Americans are finding ways to remodel their homes on a budget.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Nicholas Jacobino
Video Transcript
Everyone, let’s stick with housing for a hot second.
Here, Americans are delaying their home renovation plans and opting for more affordable options amid high borrowing costs and housing market recovery that has yet to fully entirely materialise here here with the story, though, we’ve got Yahoo Finance’s Danny Romero.
Hey, Danny, what do we know, Brad Becoming a fixer upper is really expensive right now.
Uh, consumers are shifting away from big renovation projects and moving towards those do it yourself type of projects.
Data from John Burns in April showed that consumers are trying to find cheaper alternatives in categories like cabinets, flooring, lighting fixtures and even counterparts.
I spoke with a homeowner in Michigan that said that he wanted to replace his shower stall, and he said that it would cost him about $1000 just to replace that shower stall.
You can see it on your screen right now, and so that was really out of budget.
And he also said, this is not including, uh, labour costs into all of this mix.
So instead, he found DIY Facebook groups and started posting these pictures on these Facebook groups and in those Facebook group I mean, I I’m sure, you know, a lot of people go in there and they just start saying suggestions, references, But they just start putting comments in there.
And so he was like, Wow, I can actually repair this shower stall for $25 a way better in his budget, let’s say, um, but obviously, this homeowner isn’t the only one.
There’s data from John Burns that said that 36% of consumers are delaying projects for an even further date, while 30% of consumers are spending less.
That was according to data in April, and the reason is, building products are so expensive right now, and the cost of labour is has also gone up, Brad.
But the slowdown isn’t gonna last forever.
According to experts, there are two catalysts that really will help this market.
This industry for one household wealth is so strong right now, and that really is an cater for large discretionary spending.
Number two is that experts say that 50% of homeowners are sitting in a home that is 40 years old, so that means that eventually those homes will need to be replaced and repaired with inside the home And so that will also help the home improvement market.
Some critical structural projects.
Perhaps Here, Danny, thanks so much for taking the time to break this down.
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