AAA Distributor President Forecasts Election-Year Effect on Home Improvement Costs

Industry leader Michael Neal says policy changes during and after elections should mean lower costs, more accessible financing for home renovations.

PHILADELPHIA, PA / ACCESSWIRE / September 17, 2024 / The U.S. presidential election, just two months away, will change customer trends in the home improvement sector, according to Michael Neal, president of AAA Distributor, an innovator with decades of experience in the industry.

"During this election year, we're seeing that while home improvement projects are still happening, customers are opting for smaller, more manageable renovations as they wait for greater economic certainty," Neal said.

He added that inflation and interest remain key contributors to this year's turbulence, but the remodel and housing market's pent-up demand is strong. After the election, a quick recovery is expected in the second quarter of 2025.

Neal noted that inflation has declined to 3%, and interest rates may drop soon, with Jerome Powell indicating a significant cut. The Federal Reserve might reduce rates to 4.5% by the end of 2024, boosting the economy and home improvement sector.

Lower borrowing costs mean homeowners and builders are more likely to finance renovations, making projects like kitchen updates or new gardens financially feasible. New home construction also benefits from attractive financing options, driving demand for contractors.

AAA Distributor is prepared for increased demand, with a strong stock position and a robust supply chain network to support customers' needs. Neal mentioned that flexible financing plans will make renovations more affordable as rates drop.