U.S. homeowners are still investing in renovations, yet are more deliberate with their spending. This mirrors the same activity seen on the new home front, buyers will wait out until they find the right home, contractor or design team.
“A downshift in remodeling growth, even as total spending reaches a high level, points to a slow-growth, normalization phase rather than a downturn in the housing market.” Hannah Jones, senior economic research analyst at Realtor.com, said. Large projects will likely not be a priority for many homeowners with affordability concerns. While interest rates are sliding for both new homes and HELOCS, labor and materials are still a pressure point for rising costs.
“The pace of growth is easing as pandemic-era drivers, including extra savings and emergency upgrades, continue to fade,” Jones said.
