Reno Appetite Grows

Australia’s appetite for renovation is continuing to grow despite increasing materials costs.

National Australia Bank data shows that renovation loan demand is up by 16% in the 12 months to April 30.

It says Queensland owners in particular are keen to renovate and upgrade their homes, with a 25% increase in renovation loans over the past year.

Western Australia renovation loans are up 17.9% and South Australia is up 15%. While Victoria’s renovation loans are up 10.8% and New South Wales is up 10.7%.

NAB executive home lending, Denton Pugh, warns homeowners that they still need to factor in potential cost increases.

“The risk is costs could begin creeping higher again as fuel prices flow through to building materials and labour,” he says.

“Renovations remain a great way to add value, but in the current environment, it’s important to plan ahead, build in buffers and stay flexible as conditions change.”

He suggests that would-be renovators ensure they plan to use easy-to-source materials and focus on upgrades that reduce ongoing household costs.