Home Renovations Were Always Tough. Now Many Are Giving Up Mid-Project.
Labour shortages and high demand have meant months-long slowdowns for people waiting to fix up their homes
4 min
USA: A surge of home renovations in recent years combined with a shortage of contractors is turning more repairs and remodels into never-ending nightmares.
New homeowners and those renovating always expect projects to require more time and money than their contractor estimates. But for many, the costs have become so high and the waits so long that some are now abandoning projects midway, forcing them to live among half-finished renovations for months. Others are taking up the drywall themselves.
A renovation now takes 79 days on average, up 259% from 22 days in 2019, according to Jobber, an operations-management company whose software is used by home-service professionals. Remodelling is more expensive: Hourly wages for general construction workers are up 42% over the same period, from $35 to $49, according to insurance analytics firm Verisk. Material costs have climbed, too.
The Federal Reserve raised short-term interest rates by another quarter percentage point on Wednesday, a decision that will likely continue to suppress purchases of new homes. More people who had planned to move may now stay put and renovate their existing property, says Abbe Will, a researcher at Harvard’s Joint Center for Housing Studies.
Spending on home-improvement and repair projects in the U.S. increased by an estimated 15% in 2022 to a record $567 billion, following an 11% increase in 2021, according to a report issued Thursday by Harvard’s housing studies centre. Historical growth has averaged around 5%, says Ms. Will, the lead author.
Baxter Townsend and David Zlotnick thought buying an outdated Manhattan apartment and renovating it would be more affordable than new construction. Over a year and $250,000 into a remodel quoted to take a maximum of 15 weeks and around $100,000, they say they regret their decision.
The couple had to pay to completely redo the electrical work after Mr. Zlotnick tripped a circuit and sent sparks flying by plugging in a vacuum. The tiles in the primary bathroom are crooked and the sinks askew. Still, they dismissed the design firm they had been working with this month so they could finally move back home.
“We’re like, ‘Pack up and get out. It’s been a year. Please leave,’ ” says Mr. Zlotnick, who works in international shipping logistics. They plan to hire a different firm to finish the project, if they can find one.
New recruits needed
Those renovations and repairs can’t happen quickly without an influx of qualified workers. The construction industry will need to attract more than a half-million additional workers on top of the normal pace of hiring in 2023 to meet the demand for labor, according to Associated Builders and Contractors, a trade organisation.
General contractor Miguel Villamil employs four people in Indianapolis, and says he has struggled to find more workers. His lead time for projects has stretched up to seven months, and he has raised prices for his services considerably to stay staffed. He pays his workers a starting salary of $20 to $25 an hour, up from $12 to $15 in 2020.
He says he is frustrated with contractors who deliver rushed and shoddy work—hurting the industry’s reputation—and with homeowners who don’t always recognise the realities of the marketplace.
“It’s a big, big, big problem,” Mr. Villamil says. “People without experience starting their own businesses, but also big companies who end up hiring subcontractors who have no experience because they have no choice.”
Facing long waits and high prices, some impatient homeowners are taking matters into their own hands—with varying results.
Total homeowner spending on do-it-yourself improvement projects grew 44% between 2019 and 2021, to a record of $66 billion, according to the Harvard report.
Mr. Villamil has picked up jobs from homeowners who tried, and failed, to do it themselves.
“Some of them do a halfway-decent job,” he says. “Some of them don’t.” He adds that one client inadvertently wired the TV to click on every time he flipped the light switch. “They try their best,” he said.
DIY by necessity
Laura Hrusovsky wasn’t trying to save time or money when she became the general contractor on a massive home-repair project. She just didn’t feel like she had a choice.
About a year ago, Ms. Hrusovsky came home from a day out with friends to a sopping entryway carpet and water cascading out of the light fixtures. An upstairs toilet had sprung a leak from the water line, spewing hundreds of gallons of water through her 3,800-square-foot home in Valparaiso, Ind.
When their preferred general contractor said he couldn’t start for another six months, her husband, Jim Hrusovsky, had an idea. “I said to Laura, who is very well organised: ‘Are you willing to try it?’ ”
She took on the 40-hour-a-week project, but isn’t happy she had to. “I just lost a year of my life,” she says. She says she has a newfound appreciation for construction work.
Evan Moody and Autumn Furr bought a second home in New York’s Catskill Mountains in summer 2021. The couple expected the few cosmetic upgrades and repairs on their list would take a couple of months. Almost two years later, the house still isn’t finished.
After getting turned down by every electrician in the area, Mr. Moody ended up pleading with one who was two counties over. On top of a $100 surcharge for travel, he said he could only come on a rainy day when he couldn’t do the outdoor work that made up most of his income. A storm didn’t occur for weeks.
Tired of waiting, Mr. Moody recently took a week-and-a-half away from his job in advertising to build a back deck himself. He knew he was in trouble and needed a professional to finish the job when he had barely gotten the holes for the posts dug by the end of day two.
“I think that going into this, we had the perception that we were very good DIYers,” Mr. Moody says. “I learned that, in fact, I wasn’t.”
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The grand harbourside residence combines sweeping Sydney Heads views, resort-style entertaining and refined designer finishes with a reported $36 million price guide.
Rising rates, construction inflation and shrinking investor confidence are pushing Australia deeper into a dangerous housing spiral that monetary policy alone cannot fix.
Office rents in Sydney, Melbourne and Brisbane are climbing at their fastest pace since the pandemic as tenants compete for premium CBD space amid tightening supply.
2 min
Australia’s major CBD office markets are recording some of their strongest rental growth since the pandemic, with businesses increasingly prioritising premium office space despite elevated geopolitical and economic uncertainty.
Knight Frank’s Australian Office Indicators Q1 2026 report found net effective rents in Sydney and Melbourne CBDs rose at their fastest annual pace since COVID-19, increasing 10.2 per cent and 6.8 per cent respectively over the 12 months to March.
Brisbane posted the strongest growth nationally, with net effective rents climbing 11.7 per cent over the same period.
The report points to a widening divide between prime CBD office towers and secondary office stock, as occupiers increasingly focus on quality, location and workplace amenity when making leasing decisions.
Knight Frank Senior Economist, Research & Consulting Alistair Read said demand remained heavily concentrated in premium assets within core CBD precincts, helping drive stronger rental growth in top-tier buildings.
“Occupier demand continues to be heavily concentrated in the most desirable CBD precincts and the highest-quality buildings, accelerating a sharp divergence between core and non-core markets,” Mr Read said.
According to the report, Sydney’s Core precinct and Melbourne’s Eastern Core significantly outperformed broader CBD markets over the past year.
“In Sydney’s Core precinct and Melbourne’s Eastern Core, net effective rents surged 14.3% and 16.1% over the past year, significantly outperforming the rest-of-CBD precincts,” Mr Read said.
The rental gap between prime and non-prime office locations has also continued to widen sharply.
“As a result, core CBD rents are now 54% higher than non-core locations in Sydney and 93% higher in Melbourne, highlighting the growing premium placed on amenity, accessibility and workplace quality,” he said.
Knight Frank said the strong rental growth across the major CBDs was being underpinned by a limited supply pipeline, with few new office developments expected to be delivered in the near term.
Mr Read said subdued construction activity was likely to support ongoing rental growth and tighter vacancy rates over the medium term, particularly for premium office towers.
“The combination of sustained demand and declining levels of new development will aid ongoing prime rental growth and lower vacancy rates over the medium term, particularly for best-in-class assets,” he said.
The report noted that current economic conditions were making new office developments increasingly difficult to justify financially.
“Economic rents remain well above expected market rents, making the construction of new office towers largely unviable, and concentrating tenant demand into existing buildings,” Mr Read said.
While suburban office markets generally remained subdued compared with CBDs, Melbourne’s Southbank precinct was identified as a relative outperformer, recording annual net effective rental growth of 2.7 per cent.
The report comes as broader Asia-Pacific office markets continue to stabilise following several years of disruption linked to hybrid work trends, inflation and rising interest rates.
Knight Frank’s separate Asia-Pacific Q1 2026 Office Highlights report found Sydney and Brisbane were among the strongest-performing office rental markets in the region, behind only Bengaluru and Tokyo for annual prime net face rental growth.
The Asia-Pacific report also found 18 of the 24 cities monitored across the region recorded stable or increasing rents in the first quarter of 2026, even as geopolitical uncertainty intensified following escalating conflict in the Middle East.
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