STUDY. Homeowners’ Remodeling Plans Not Deterred by Inflation or Shortages

However, inflation and widespread supply-chain problems are increasing the cost of construction projects all over the world. This is not stopping homeowners from updating their homes.

Nationwide recently conducted a study that found that 77% of homeowners who are currently working on home improvements don’t plan to stop despite the high cost of materials and supply chain complications.

“Nationwide’s survey found that most homeowners who did major remodels in 2021 encountered significant obstacles caused by supply chain issues and inflation, such as increased material and labor costs and delayed timelines,” stated Cathy Allocco (Vice President of Small Commercial Sales and Distribution at Nationwide).

“The best part is that these obstacles aren’t affecting their future remodeling plans. Seven in 10 homeowners say they will continue with their plans for 2022 remodeling. They are looking for ways to collaborate with contractors to reduce costs.

These are just some of the creative ideas revealed by the survey. 40 percent of homeowners are willing to sign contracts to lock-in pricing, even if it takes longer than three months for the project to start. A staggering 94% of homeowners said that they are okay with materials being stored on their property in order to avoid higher prices down the line.

These homeowners are not just renovating their homes to increase market value. Only 16% said they are doing it to increase their home’s market value, and 44 percent said that they wouldn’t consider selling their house after remodeling.

Building in 2022 will be fraught with complications and delays. Nationwide surveyed a majority of construction business owners and found that building materials will be more costly than in 2021. Sixty-eight per cent expect to have difficulty finding materials for their projects. Yet, 70% of respondents were optimistic about the future despite these potential challenges.