How Will Inflation Impact My Home Renovation?

In 2021, housing prices rose faster than ever before. And so did home values, leaving those who already own a roof over their head with gains in home equity averaging around $50,000 in just one year.

So how are folks maximizing the newfound equity in their homes?

Many savvy homeowners are choosing to capitalize on recent gains by tapping into their equity to finance home upgrades, renovations that may produce even greater returns down the road.

Is it wise to remodel my home now?

Now is a great time to consider remodeling your home. The demand for houses is still high, yet inventory remains fairly low. If you’re looking to sell your home soon, you’ll want to make your house more desirable for potential buyers. In order to maximize the return on your remodel investment, consider the following upgrades that will make your home attractive to today’s buyers:

Remodel the kitchen

Consider changing the layout of your kitchen to make it more open and functional. Buyers most often are looking for updated cabinets and countertops, a large kitchen island, and modern flooring and lighting design elements. Energy-efficient appliances are a huge bonus, too.

Upgrade your bathrooms

Today’s home buyers are looking for bathrooms that provide a spa-like feel. Update your vanities and fixtures and even consider adding a walk-in shower. New tile or marble will help create the luxurious look that buyers want.

Replace dated lighting fixtures

One way to quickly transform the look of your living areas, bedrooms, bathrooms, and kitchen is to replace dated light fixtures with new stylish ones.

Install new flooring

From traditional hardwood to the popular LVP, flooring comes in all colors, textures, and materials. There are all kinds of flooring options that work for every family’s unique lifestyle, and quality options that fit almost any budget, as well.

How is supply and demand impacting building materials?

It’s no secret the pandemic set the stage for higher prices on most goods and services. From the grocery store to the gas pump, you’ve likely felt the impact in some way already. Just like other businesses, the kitchen and bathroom industry was impacted by disruptions in the supply chain. Factories were shut down which created limited availability for certain materials at a time when demand for building materials was at an all-time high. Now that production has revved back up, factories are cranking out materials that were backlogged for many months. Supply still isn’t where it needs to be in order to keep up with the demand, which has created some unfortunate delays and price increases on certain materials and products.

Should I wait for prices to go back down before I start a renovation?

Unfortunately, waiting it out won't do the trick. It's likely these costs will remain elevated for a while to come, maybe even forever. While a home renovation may seem costly now, investing in the right projects will pay off down the road. Any real estate agent will tell you to focus your budget on upgrading bathrooms and the kitchen in your home. These areas are where a home sees the most amount of foot traffic and where potential homebuyers place a majority of the value in a home.

The Good News

Home values have increased drastically in the past year, creating a great market for selling a house. Last year, housing prices were up nationwide by around 17% and some economic experts have predicted that home values will continue to increase by 16.4% through 2022. Your home is likely to increase in value even more over the next year, which makes reinvesting your equity in home renovations a solid idea.

Housing inventory is still relatively low, which means with the right upgrades, your home could be in high demand. Your investment in home renovations will likely make your house worth even more, which will help you get top dollar when you’re ready to put it on the market.

Are You Ready to Renovate Your Home?

Our Pool Brothers team can provide you with custom solutions that will add value to your home.

Our in-house kitchen and bath design professionals will work with you to plan every detail of your remodel project and our highly experienced carpenters will focus meticulously on bringing your dreams of a new kitchen and bathroom to life.