STUDY: Homeowner’s Remodeling Plans Undeterred By Inflation and Shortages
Inflation is cranking up costs and material shortages are delaying projects, but that's not stopping homeowners.
Inflation and rampant supply-chain issues are driving up the cost of construction projects everywhere, but that’s not stopping people from upgrading their homes.
According to a recent study by Nationwide, 77 percent of homeowners currently working on home improvement projects aren’t planning to abandon future plans despite high material prices and supply-chain complications.
“Nationwide’s study found most homeowners who completed major remodels in 2021 faced significant obstacles brought on by supply chain and inflation issues, such as higher material and labor costs, delayed timelines and limited material availability,” said Cathy Allocco, vice president of small commercial sales and distribution at Nationwide.
“What’s most surprising, though, is these hurdles are not impacting their future remodeling plans, with seven in 10 homeowners saying they’ll proceed with their remodeling plans in 2022 anyway. But they’re looking for new ways to work with contractors to save on price.”
The survey revealed some of those creative ways. Forty percent of homeowners would be willing to sign contracts to lock in pricing even if they have to wait more than three months to begin. And an overwhelming 94 percent said they’re OK with storing materials on their property to avoid paying higher prices on those materials down the road.
Notably, these homeowners aren’t just upgrading their homes to boost market value. Only 16 percent said they’re doing it to prepare for a sale, while 44 percent said they would not consider selling their homes after remodeling.
Unfortunately, complications and delays are an unavoidable aspect of building in 2022. Most construction company owners surveyed by Nationwide predicted building materials will be more expensive than in 2021. Sixty-eight percent expect to struggle to find materials for projects. And yet, despite those potential problems, 70 percent said they were optimistic about the year ahead.