Homeowners keen on renovations should get a move on

Did lockdown make you realise how much you hate your kitchen?

Are lockdown savings burning a hole in your pocket?

You’re not alone. A post-lockdown renovation boom is well under way, so if you wait until spring, when most Kiwis crack on with their home improvements, you might be waiting a while.

Builderscrack, an online jobs board for building work, says there was a near-30 per cent jump in work posted on its website in June.

READ MORE:
* The real cost of building site and tradie vehicle break ins
* When’s the best time to book a tradie
* Lockdown spurs home improvement bonanza for builders and retailers
* Kiwis shopping local give small businesses a boost

“June saw our highest ever number of jobs posted on our platform at just under 8000 for the month,” managing director Jeremy Wyn-Harris said.

“‘We are definitely seeing a boom in repairs and renovations. But we’ve only had a slight dip in engagement from tradies from 90.9 per cent to 90.4 per cent on the jobs posted.”

The boost we’re seeing now is a result of several things. Kiwis were forced to spend a long period of time at home during the lockdown. We had a lot of time to think about our surroundings and how we might like to improve them.

Uncertainty in the property market has got more people thinking about the value they can add to their home instead of upsizing.

And with the trans-Tasman bubble and other overseas travel off the cards for the foreseeable future, some people have decided to redirect their finances.

“I don’t know if they had a massive sale on spa pools or what, but I’ve never installed more of them,” said Tahi Spinks, owner of Number One Electrical Solutions in Waihi.

Spinks doubled his staff from 10 to 22 electricians in the weeks after lockdown to keep up with “crazy” demand in the small town.

“The housing reno work is pumping. We’ve done 400 jobs since the end of April, an average of 100 a week,” he said.

In two months, Spinks has earned more than a third of his annual turnover in add-ons, new bathrooms and kitchens, extractor fans, heat pumps and new builds.

Head of Trade Me Jobs Jeremy Wade said job listings for builders, painters and carpenters had increased, with the most demand for painters (up a staggering 32 per cent from June 2019).

However, the number of applications for roles in trades and services was up 56 per cent in the second quarter of 2020, potentially due to significant redundancies from Fletcher Building and other commercial employers.

The availability of tradespeople is seasonal and winter is usually slower with larger jobs.

“I believe homeowners are making the most of availability at the moment. Usually tradies are much harder to get in the warmer months and a fair bit of lead time is required for larger projects,” said Wyn-Harris.

The story is the same with home improvement retailers.

“Post-Covid demand from both retail and trade customers is buoyant, well above what we’d usually expect at this time of year,” said Mitre 10 general solutions manager Chris Peak.

“Our trade customers saw most projects stall over lockdown and now there’s obvious pent-up demand in the residential sector.

Michelle Williams, consultation coordinator of Harvey Furnishings expected work to be “cruisy” after lockdown: “It’s flat out.”

In Auckland alone, all seven consultants are booked out until next Friday. Williams said customers can choose between to pay an extra $100-$200 for their materials to arrive quickly via air freight, but 75 per cent of people are opting to wait six weeks for sea freight due to Covid disruptions.

Phil Harrison, owner of Harrisons said the demand for carpets, curtains and blinds was significantly higher than expected and was pushing installation times out by a week.

“It’s exceeded all our expectations and it continues to be busy.”

Mitre 10 maintains that stock levels and supply chains are performing strongly.

“There may be a few pockets of short-term out-of-stocks as a result of very high demand and suppliers playing catch up. Potted colour, while not a building product, is a good example – suppliers couldn’t plant during lockdown which caused a short-term gap that they’ve now recovered,” said Peak.

However, homeowners may notice price increases for certain materials and appliances are passed on to them in the coming months due to global disruptions.

Wyn-Harris provided three letters from materials suppliers to trade customers that said prices of concrete, gaskets and copper tubes, as well as cooking, dishwashing and refrigeration appliances will increase in June.

“I agree with other commentators that most people have spent a lot of time at home, and have identified things they want to fix and improve. With interest rates the lowest they have even been, improving their homes has become a major focus – especially with uncertainty in other assets,” he said.

If interest rates remain low with the onset of spring, then we will see continued demand for home improvements.

“We could see it harder to find tradespeople come September. My recommendation would be to start planning those projects now, looking at getting plans and consents sorted where necessary so you are well-placed to get things sorted by Christmas – especially if your job needs a builder or a plumber as these trades are usually in shorter supply than others.”