Home improvement projects have gotten through the roof in the past year and a lot of them had to do with the coronavirus. A study by Discover Home Loans found that roughly one in two Americans planned home improvement projects during that period. However, other studies suggest that setbacks could occur and that we can expect homeowners to slow down. Amid the uncertainty about the economy and the real estate market, some indicators may show a reverse trend.
Home Improvement A top priority during the pandemic
As more and more homeowners began to realize the importance of their living space and possibly return at a later date, there has been an increased interest in improving their property during the pandemic. When asked in March 2020 when the closures began, around 53% of those surveyed said they wanted to tackle renovation projects. Most homebuyers were.
When asked in August, this number rose to 58%. According to most people, their main goal was to improve their quality of life. 83% of respondents said this was their priority, while 62% said health and safety was a priority and that they would like to do renovations to make their home safer.
Most popular renovations during the pandemic
One of the most common renovations during this pandemic was anything related to landscaping and gardening. Since people couldn’t enjoy nature that much, they seemed to be trying to recreate it at home and also had more time to spare. Landscaping and gardening also have a comforting element, which can be one of the many reasons why so many people have chosen to increase their spending.
More online searches were made how much land is needed For projects and Americans have also spent more on seeds and plants. In fact, in Missouri, Baker Creek Heirloom Seeds stated that March 30, 2020 was their greatest day of their entire existence.
More and more people are working as a hobby or gardening to improve their property, but food insecurity is another motivating factor. More and more people seem to be interested in independence and expanding their food supply. Everything that has to do with preparation and living outside the grid has also seen a surge during the pandemic, so a connection could definitely be made here.
Harvard study warns of a push-back
However, some research suggests that homeowners may soon start rethinking their plans and we could see a decline in home renovations. A Harvard study found out that several indicators show that people are less enthusiastic than many expected.
The Remodeling Futures program uses inputs such as home price, construction material sales, and GDP to measure interest in home remodeling projects. Accordingly, the trends seem to be going backwards. Some of the reasons for this could be the uncertainty about the future of the economy that many homeowners are feeling right now. Some may fear a loss of income and be reluctant to make larger expenses. Some may have uncertainties about equity or other forms of wealth. All of this contributes to a possible reduction in the number of projects, at least at the beginning of the year.
What can we expect from the future?
Many questions are answered when and when mass vaccination projects bear fruit. A COVID-free summer, fall, and winter could be enough to restore confidence in the property market and push owners into major renovations to capitalize on a recovering market. On the other hand, there is still the possibility of a nightmare scenario in which we are hit by successive waves. Only when these questions have been answered can we know the real state of the home renovation market.
Do the right renovations during the pandemic
Homeowners are also advised to be smart about renovations. The motley fool suggests that you only invest in projects that can generate a good return on investment. The way your property compares to others in your neighborhood also needs to be considered. They also suggest that you think twice before borrowing for the renovation as it will add additional strain to your finances and add to your overall costs.
The future of the economy rests on the shoulders of homeowners and they are a good indicator of their condition. All signs point to a rocky summer and year for homeowners, although vaccination brings a glimmer of hope.