The Inflation Reduction Act incentivizes energy-efficient upgrades. Homeowners who install certain products like solar panels, energy-efficient windows, water heaters, HVAC systems, and heat pumps can qualify for tax credits under the new law.

Supply chain improvement is expected. "The supply chain is beginning to see some light at the end of the tunnel," says MB Sentinel founder Jeff Kutas. "...steel and lumber are already beginning to see some downward action, which should continue with lower demand in the near term."

Reduced backlog for builders. As the housing market slows, less demand for new homes is expected to lower prices for building supplies and free up construction crews, reducing the number of backlog jobs that currently exist. All of this could translate to more reasonable costs and timetables for renovations this year.

Planning a renovation in the new year? The experts at National Iron Bank can help you tap your home equity to transform your house into your dream home. Click here to learn more!

Excerpt from GoBankingRates