Remodeling in a Fear Economy - 5 Top Takeaways by Alisa Hoffman, Design Set Match

While I don't claim to be an economist or political expert, I can tell you that the remodeling industry has entered what I'm calling a "Fear Economy." This term describes the current climate of uncertainty and reactive purchasing behavior we're witnessing in the home improvement sector.

Since the recent presidential election, clients have been asking what we're doing about impending tariffs and how they should approach their home projects. Initially, the answer was straightforward: remodel now because manufacturers still have inventory, and tariffs would only impact material costs in the next replenishment cycle.

That time has arrived. This past week, we facilitated plumbing orders for projects of all sizes as price increases became imminent. Starting May 1st and continuing through this week, most plumbing and accessory manufacturers have implemented cost increases to consumers. These increases go beyond their annual inflation adjustments, with some companies already planning additional increases for early April.

We've also been monitoring other materials - doors, hardware, light fixtures, and more. Alarmingly, some manufacturers aren't providing adequate notice about price changes; you might place an order only to discover the next day that prices have increased. The situation is rapidly escalating, reminiscent of the 2020 toilet paper shortage but potentially with far greater economic consequences.

So how should we respond before this creates more havoc and impacts job security? Here are five essential strategies:

1. SLOW DOWN

As economic anxiety rises due to stock market fluctuations and retirement plan concerns, resist the urge to rush. Maintain your normal spending and purchasing pace. If your project isn't scheduled to begin construction until January, there's no need to accelerate material purchases now.

2. BEWARE THE PITFALLS OF BUYING TOO EARLY

Purchasing materials too far in advance carries significant risks. Warranties typically begin on delivery day, and damage may not be immediately visible. A year later, a problematic shower valve might no longer be exchangeable at the same cost. Consider logistics as well—where will you store a house full of windows and doors? Will you incur additional storage costs? What happens if materials are damaged during the second shipment from storage to your home?

3. UNDERSTAND THE LARGER ECONOMIC IMPACT

Mass purchasing driven by uncertainty will initially trigger inflation—creating the appearance of market recovery. However, the inevitable drop following this purchasing wave could precipitate our next recession. This becomes a self-fulfilling prophecy, generating more panic and ultimately affecting everyone's job security, especially new graduates entering the workforce.

4. PLAN ACCORDINGLY

If your home requires attention due to deferred maintenance or if a whole-house remodel seems financially daunting, take a step back. Reassess what's realistic for your family. Break your project into manageable phases. Prioritize safety hazards and projects that significantly impact your family's social and emotional well-being. If funds are tight but action is necessary, work with your design team to consider simple refreshes that might tide you over until you're truly prepared for more extensive remodeling.

5. TAKE A BREATH

This should perhaps be the first recommendation. Take several deep breaths, practice daily self-care, and remember that we can usually only control smaller aspects of our lives. While we can each do our part, we can't single-handedly resolve national economic concerns, especially during chaotic times. And remember—don't overbuy toilet paper and canned goods. We've weathered challenges before and will emerge stronger than we might imagine.