Homeowners Delaying Home Improvements Projects Due to Inflation

New research reveals that large projects and purchases may be another victim of high inflation for homeowners.

According to the 2022 Homeowner Preparedness Report from Hippo Insurance, 60 percent of homeowners are less confident about making significant purchases for their home or family due to rising prices. Nearly 43% agree that inflation has prompted them to defer planned home remodeling or maintenance initiatives.

On behalf of Hippo, Ipsos surveyed 1,915 persons in the United States from April 29 to May 1 for this study.

According to the latest figures from the U.S. Bureau of Labor Statistics, with inflation increasing 8.6 percent year over year in May — more than anticipated and the quickest pace since 1981 – people face price hikes in everything from food and petrol to rent and clothing. Demand continues to outpace supply, which is frequently hampered by supply-chain difficulties.

According to National Association of Home Builders reports, residential house building expenses are 19 percent more than a year earlier. Depending on the specifics, this may result in greater expenses for home remodeling projects. Despite increased mortgage rates and soaring home prices, the housing market looks cooling. According to Realtor.com, the median list price of a property in the United States is $447,000, up 17.6 percent from a year ago.

Financing upgrades or enhancements are also becoming more expensive, as interest rates are anticipated to continue to rise as the Federal Reserve employs higher rates to combat inflation.

Nevertheless, delaying certain projects can be risky. Delaying routine maintenance can result in higher repair costs in the future. The Hippo poll revealed that homeowners spent an average of $4,000 on house repairs in 2017.

While it is prudent to set aside funds for upkeep and repairs, you can also take measures that may prevent costly repairs. For instance, be aware of the location of the main water shutdown. Turning off this valve might avoid further water damage if you notice a leaky line from your refrigerator or washing machine.

Commence with a routine home inspection. Notate any evident flaws, such as cracks in the foundation or wet spots, which could indicate the presence of mold. Create a list of must-dos and get-to so you can work your way through the list over time.

Prioritize costly repairs, such as water leaks and structural problems, around the home. Not all house repairs are made equal. Therefore it is essential to search for indications that a project requires immediate attention.

If you don't know where to begin with essential house maintenance, you can discover checklists online, such as on Hippo or Homeadvisor.com.