71% of Homeowners Postponing Renovations Due to Economic Concern

So far this year, 71% of homeowners have postponed renovations due to economic uncertainty, according to a survey of over 1,000 homeowners by Guardian Service. 

Facing financial challenges, they reported that their home improvement budgets have fallen by an average of 42%. Two-thirds of respondents said they eliminated theirs entirely, choosing to focus their spending on other areas. As for an estimated timeline for getting these renovations completed, nearly 3 in 10 said they’re willing to wait one to two years for major upgrades, and 15% have postponed them indefinitely. 

The most commonly postponed home projects this year are: 

1. Painting, flooring or other aesthetic work (48%) 
2. Bathroom remodel (33%) 
3. Kitchen remodel (26%) 
4. Window upgrades (22%) 
5. Electrical or plumbing repair (21%) 

Amid economic uncertainty, what are homeowners waiting for? The top things they said would make them feel financially ready to resume home upgrades were: 

1. Lower inflation (69%)
2. Lower cost of building materials (65%) 
3. More affordable contractor labor (47%) 
4. Reduced tariffs on imported building materials (43%) 
5. A tax credit or rebate (34%) 

While postponing some aesthetic upgrades may have little to no impact on their homes, nearly half (49%) expressed concern that putting off projects this year may have made their homes less safe. 

Additionally, skipping upgrades like roof repairs could raise premiums and cause other insurance challenges, which 36% weren’t aware of. Approximately 37% said they believed their home would not pass an insurance inspection or weren’t sure if it would, and 23% said they have avoided filing a home insurance claim because they were worried about the condition of their property triggering inspection or denial. 

When financially possible, the majority (69%) of homeowners said that they’re most likely to invest in safety or structural improvements instead of aesthetic improvements (12%).