The state of the current government has some people very anxious about spending money. Even when there is a valid reason to part with funds, like for home improvements, many are opting to save their dough for a rainy day. Are the threats of a major war and health care issues hitting too close to home? Some banks say that the lack of home improvement projects could cause major issues down the road.
Call it political anxiety or terror, but since the new administration has been in office over 100 days, the angst against spending is getting worse. A recent poll showed that 35 percent feels that their financial outlook is improving under the current president. However, that leaves more than 65 percent are uneasy about their future. What happens if the real estate market crashes again? There will be a lot of homes with maintenance issues left for banks to contend with.
For some, it is simple math. Why spend money on that new carpet or a new HVAC system, when the bottom might fall out of the economy? What if a person loses their job? Though most people will try to hold on to their home as long as possible, it is often the first major purchase that is let go. It is easy to find another place to live as most cities have ample rentals.
Brad Hunter, Home Advisor Board’s Chief Economist, stated that home improvement activity is presenting with some resilience due to the political shifts. The future is bleak in many people’s view, and it could shake the very foundation they live on.