Homeowners continue to invest in home renovations despite economic uncertainty and rising prices

From Yahoo Finance: 2025-05-23 06:59:00

U.S. homeowners are defying the economic downturn by spending more on home renovation projects, with sales at building materials and garden supply retailers rising by 0.8% last month, the biggest gain since 2022. Prices for home improvement products are also on the rise, increasing by nearly 4% in the first quarter.

Despite recent price hikes, the surge in spending on home renovations does not seem to be directly related to the ongoing trade war between the U.S. and major trading partners. Home Depot reassured customers that they do not anticipate raising prices due to tariffs, but some products may disappear from shelves.

High interest rates are dissuading homeowners from taking on large renovation projects, like kitchen and bath remodels, with fewer customers opting for such endeavors. Home sales have been in a slump, as many homeowners are reluctant to sell due to increased mortgage rates, which have risen to nearly 7%.

The aging stock of homes in the U.S., with nearly half built before 1980, has contributed to the increased demand for repairs and improvements. Harvard University projects that spending on home renovations will continue to rise, with homeowners already spending 0.5% more on maintenance and improvement projects in the first quarter compared to last year.



Read more at Yahoo Finance: Homeowners spend on renovations and repairs despite the uncertain economy and higher prices