DIY Projects in Focus: Renovation Trend Turns to Small Undertakings

The times for large-scale renovation projects are currently difficult: tariffs threaten to drive costs up, inflation remains high, and labor costs continue to rise. In light of these uncertainties, many homeowners are opting for smaller, manageable projects instead of major remodels. Where a comprehensive kitchen renovation quickly reaches a five-figure amount and a bathroom remodel can cost over $25,000, retailers like Home Depot and Lowe's observe a trend towards smaller, more affordable projects. This caution contrasts with expectations that many homeowners with built-up equity and low mortgage rates would undertake significant renovations. While spending on renovations increased significantly between 2020 and 2022, in line with a home-buying boom, growth has slowed since mortgage rates rose and home sales stagnated. Studies by the Joint Center for Housing Studies at Harvard University show that although spending on renovations continues to rise, it is no longer at the pace seen during the pandemic years. President Trump recently announced a new 50% tariff on kitchen and bathroom cabinets, which could further increase costs. 'We are literally managing [tariffs and prices] in real time because we are in uncharted territory here,' said Lowe's CEO Marvin Ellison. Gabriel Perez, a consultant at Premium Siding & Painting Co. in Austin, Texas, reports a slowdown in business. A few years ago, the family business employed three teams, now mostly only one. Expensive projects, such as the complete replacement of sidings, are often postponed, while smaller repairs, window and roof repairs, often covered by insurance, persist. 'I think people are trying more to save than to spend,' says Perez. The NAHB/Westlake Royal Remodeling Market Index also shows a decline, from 77 three years ago to 59 in the second quarter. Some homeowners like Laura Wanie are instead opting for DIY approaches. With a tight budget and the help of social media and AI-based advisors, she successfully renovated her kitchen for about $11,000. 'Honestly, I found that paint has the biggest impact for the smallest price,' advises Wanie. Consumers are now paying closer attention to their home improvement spending and are favoring smaller projects over larger, financed renovations.