Research suggests that large projects and large purchases could also be a victim of rampant inflation.
According to Hippo Insurance’s 2022 homeowner preparedness report, 60% of homeowners were less comfortable spending large amounts on their home or household. Nearly 43% (14.4%) and 28% (28%), agree that rising prices have caused them to delay or cancel planned home renovations or maintenance projects.
The poll used to generate the study was conducted April 29 to May 1 among 1,915 U.S. adults, by Ipsos on behalf of Hippo.
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According to U.S. Bureau of Labor Statistics, May saw inflation rise 8.6% year over the year -- more than anyone expected and at a faster pace since 1981. As a result, households are seeing price increases in everything. As a general rule, demand continues exceeding supply. However, supply-chain issues can sometimes hinder this trend.
According to the National Association of Home Builders, residential housing construction costs have increased by 19% compared to a year ago. This could mean higher home-improvement costs, depending upon the details. The housing market is cooling because of higher interest rates, skyrocketing home values, and a decrease in home sales. However, the median listing price for a home in the United States is $447,000. This is 17.6% more than a year ago according to Realtor.com.
However, delaying some projects can be risky. Putting off routine maintenance can lead to bigger repair outlays down the road. The Hippo survey revealed that homeowners spent $4,000 per year on repairs to their homes last year.
You can take steps to prevent costly repairs and maintain your money. You should know the location of your main water shutoff. If you discover a leaking line from your refrigerator or washing machine, turning off that valve can prevent worse water damage.
Courtney Klosterman from Hippo, a consumer trends expert. "Start by a routine inspection." "Take note any visible imperfections, like cracks in the foundation and damp areas. This could be a sign that mold is developing."
Klosterman advised that you make a list of must dos and nice to dos from there. This will allow you to work through your list slowly.
"Prioritize issues that are known to be costlier to repair such as water leaks and any structural issues around the house," she said. It's important that you look for signs that a project must be completed quickly.
Klosterman suggested that priority should be given to malfunctioning critical system, such as a broken water heater or an electric short. This is when licensed professionals should be called to solve the problem.
If you're unsure where to start when it comes to key home maintenance, you can find checklists online, including at sites such as Hippo or Homeadvisor.com.
Correction: This story has been updated to reflect the accurate percentages of survey respondents who either strongly or somewhat agree that inflation has caused them to delay planned home improvements.