Due to high inflation, the number of home improvement projects has declined

(WHTM) — First it was Home Depot, then Lowe's, which announced a drop in sales in recent days. Apparently, many homeowners are now putting off their renovation projects.

“That needs to be fixed,” Brenda Thomas said of the home improvement work that needs to be done. “The driveway needs to be fixed,” she added. “That's going to have to be kind of pushed aside until I figure out how to do that.”

Like so many homeowners, she's putting off projects because of inflation, rising insurance premiums and rising property taxes, a trend that's “toughing out the home improvement industry right now,” Forbes Magazine just reported.

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Lowe's just reported a 5% year-over-year quarterly sales decline, while Home Depot reported a 3% decline.

What's interesting now is that Target just reported strong sales, which suggests that consumers are still shopping. They're just cutting back on home improvement projects because they often require credit and, in many cases, aren't essential.

“These are two problem areas that clearly show how strained household budgets are and the reality that households face in their everyday lives when one salary is simply not enough to cover rising household expenses,” —

This is a sharp contrast to 2022, when homeowners, well-equipped with stimulus checks and low interest rates, flocked to home and garden shows and planned big projects. But in 2024, the stimulus money has run out, interest rates are high, and many homeowners are spending their money on clothing and groceries, putting off those home improvement projects until next year.

Now, if the Federal Reserve cuts interest rates in a few weeks as expected, credit card and home equity loan rates will drop. Good news for homeowners so you don't waste your money.

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