Home renovation plans are enhanced as deadlines are closing in

In the next quarter, probably 22% of the properties (833000 homes) will undergo renovations to a greater or lesser extent. The most dominant plans are coming from towns and villages, which could result from the Home Purchase Subsidy Scheme for Families, known by its Hungarian acronym “CSOK ending 30th June 2022. 

GKI conducts surveys quarterly to assess the population’s intent, prospects, and plans for home improvements. Masterplast Nyrt. has supported the survey since January 2020. This latest evaluation is based on a sample of 1000 people determined by sex, age, residence, and education.   

Even though there has been a decrease in the number of households planning to spend more significant amounts on their homes, there is still an increasing tendency. One of the reasons behind the slight decrease is the COVID-19 waves. The economic environment for renovations and modernizations is optimal. The income growth and available governmental financial support schemes have an incentive effect, although the villagers’ “CSOK” scheme ends on 30th June 2022, while the Home Renovation Program framework will finish on 31st December 2022. The payroll tax refunds, available for all parents this year, will allow families to start renovating. The increased pensions are only efficient for such activities if the pensioner receives a more considerable sum.   

The survey conducted in Q1 2022 suggests that 5,9% of households will definitely spend a larger amount on their homes while 16,7% are likely to do so. If all these transpire, 833,000 homes will undergo renovations by the end of 2022. Compared to the previous quarter, this number rose by 61,000, while it has increased by 245,000 since last year. Not just the numbers but determination enhanced. A year ago, every seventh person planning to renovate advised on a definite commitment, while this year, every fourth person did the same. As previously mentioned, this could be due to the scheme deadlines closing in.  

As in previous surveys, the most substantial intent on home improvement is among house owners (every fourth household suggests), while residents of blocks of flats and non-panel condominiums have moderate plans (families living in properties mentioned above represent 19% and 21% of the sample). 

The strongest intentions are in municipalities where almost 40% of the residents plan to get work done next year. Proportions are 23% in smaller cities, 20% in county seats, and 22% in Budapest. In terms of the regions of Hungary, the most prominent activity is expected in the central Transdanubia region, while the Central and Northern Hungarian regions are above average.  

The middle-aged class, adults between the age of 30-49, could be the most active in the near future regarding home improvements. One-third of households with a middle-aged head of the house have definite plans for home renovations, while only every fifth adult between the age of 18-29, 50-59, and every sixth over the age of 59 are likely to do so. Households with a graduate head of the house have also shown above-average intent.