The second quarter home improvement market may increase by 10%-15%
July 11 13:23:52, 2025
The second quarter of the home improvement market is expected to see a rise of 10% to 15%, driven by increasing labor costs, rising material prices, and new industry regulations. As more homeowners plan renovations after the Lunar New Year, they are beginning to notice that the cost of getting their homes updated has gone up significantly.
For instance, Yang Xiaojuan, an owner who recently bought a new house at the end of last October, had planned to start renovation after the Spring Festival. However, when she contacted a contractor, she was surprised to learn that labor costs had increased. The price for tiling, which used to be around 30 yuan per square meter, now stands at 35 yuan. This trend is not isolated. Pang Ting, director of a decoration company, explained that tile installation fees have been steadily rising over the years. In 2011, it was 25 yuan per square meter, but now it's up to 35 yuan, with annual increases of about 10% for materials and 20% for labor.
Wang Feng, general manager of Zhonglian Building Materials Supermarket, also noted that several tile and sanitary ware brands in the store have not been priced recently due to manufacturer-imposed price hikes ranging from 5% to 10%. While some decoration companies haven’t officially announced price increases yet, many are already adjusting their pricing in response to rising costs.
In addition to rising costs, new regulations are also contributing to higher prices. Starting in 2013, the introduction of stricter national standards for home decoration will add to the overall cost. The Ministry of Commerce has been working on developing these "four industry standards," which will regulate construction techniques, details, and quality. These new rules are expected to increase expenses for both contractors and homeowners.
One key regulation requires home improvement companies to conduct indoor environmental tests after completion, checking for harmful substances like formaldehyde, benzene, and TVOC. These tests must meet national standards and require consumer confirmation, meaning the cost will likely be passed on to the homeowner.
Another standard mandates third-party supervision during project acceptance, as many technical issues are beyond the knowledge of homeowners. This added oversight will bring additional costs, further pushing up renovation prices.
Some savvy homeowners are already taking action. Ma Sun, a resident of Sun Moon Starlight Community, started planning his renovation early last year. He ordered building materials in advance and arranged for a contractor to use previous-year pricing. He noted that many neighbors are now scrambling to buy materials and hire workers, with prices already rising. He believes that "hoarding" materials early is a smart move.
Wang Li, manager of the Canoe Decoration Division, advises consumers to place orders for building materials as early as April and choose a decoration company before the peak season. Traditionally, prices for appliances and building materials tend to rise in April-May or September-October, making early preparation essential.
With all these factors at play, it’s clear that the home improvement market is heading into a period of significant price increases, making it wise for homeowners to act quickly if they’re planning renovations.