U.S. Homeowners Increase Renovation Spending Amid Economic Uncertainty

U.S. homeowners are increasingly investing in home renovation projects despite a general consumer pullback amid economic uncertainty and rising costs. Sales at building materials and garden supply retailers rose 0.8% from March to April, the largest gain since 2022, and were up 3.2% from the previous year, while overall U.S. retail sales only increased by 0.1%. The cost of home repairs and remodeling climbed nearly 4% year-over-year, driven primarily by labor costs rather than tariffs or immigration policy enforcement. Home Depot reports no planned price increases due to tariffs, having diversified its supply sources, though some products may become unavailable. Elevated mortgage rates and high home prices have deterred many potential buyers, leading homeowners to improve existing properties rather than sell, contributing to a resilient home renovation market. Nearly half of U.S. homes were built before 1980, further fueling demand for repairs and remodeling, with forecasts projecting continued growth in renovation spending.