Material shortages won’t be enough to stop Australia’s renovation boom throughout 2022.
As house prices continue to surge many homeowners have turned to renovations, with the Housing Industry Association reporting a 16.8% increase in renovations in the year to September 2021 worth $44 billion.
Senior economist Nick Ward says renovation activity will remain elevated this year and in the foreseeable future.
“Australians have increased the value they put on the quantity and quality of their home space,” he says.
Ward says savings increased during Covid and many owners decided to invest that money back into their homes.
SocietyOne CEO Mark Jones says homeowners should do plenty of research before committing to a renovation.
He says owners need to ensure their budget includes a buffer for unexpected costs, as there are still material shortages and price increases in the building industry.
Jones says those borrowing to renovate should aim to lock in a fixed-rate loan, so they know exactly what their repayments will be.
Before starting a renovation, owners should consider whether the work is based on a new Covid lifestyle which may not last forever.
And experts warn renovation is never as easy as it appears on reality TV shows.