If you have been dreaming about a new kitchen or bathroom, or maybe even a new addition this is the year to get it done! According to home improvement experts, your renovation will cost less today than if you were to wait until next year. Let’s find out why.

1.Consumer Confidence is Improving

As job growth increases and wages improve, people generally feel good about the economy and their future. That makes them also feel good about investing in home improvements. Typically, remodeling decisions are made by families based upon their consumer confidence and that confidence, for now, is improving.

In December 2016, the Consumer Confidence Index posted another gain and reached 113.7- a virtually giddy number compared to when the index tanked to its all-time low of 37.7 in January 2009, the height of the recession. 

2. Contractor & Construction Worker Availability is Decreasing

Now we know 2017 is shaping up to be a busier year for contractors. That’s good news for the economy! However, the bad news is the busier those contractors get the longer you might have to wait to begin a remodeling project. On top of that, there is also a national shortage of construction workers and the current workers are not getting any younger. So if you are hoping to squeeze in a home remodel or renovation, it is better to do it now, before you’re relegated to the back of a very long line.

3. Financing is Still Affordable

Although some people might be sitting on piles of cash they can use for a remodel, many rely on financing and ofter they borrow against the equity in their homes. These days, it’s a great time to take out a home equity loan or line of credit because home prices are rising and loan rates are still low.

However, loan rates are certainly on the rise. At the end of November, the interest on a home equity loan stood at 4.82%. By the end of December, the rate was 4.97% and mid-January of this year, we are looking at an interest rate of 5.21%. Keep this in mind, though, even though borrowing costs are rising, so are home values. Lower inventory and mounting demand have bolstered home prices. The median home price in November was $235,900, which is a 6.8% increase from last year.

As the value of your home increases so does your equity and it’s primarily the equity in your home- the difference between the fair market value of your home and what you owe. That supports a loan you can use to add that bathroom or replace the roof.

4. Material Costs Will Increase

No matter how low US inflation might be, prices for building materials manufacturer around the globe always seem to go up. Even though inflammation may be low here, it could be rising in Italy, where the bathroom tile you love is manufactured. The result is that building costs, labor, and insurance, always rise and wouldn’t you rather remodel when it’s cheaper?