In truth, no industry has benefited more from stay-at-home orders than the home improvement one. The remodeling market is expecting to see even further growth in 2021 because of the continued increase in the number of homeowners spending more time at home. The average home has now also become the office, the children’s school, the gym, and much more.
Due to the pandemic, several industries are experiencing an economic downturn but the remodeling industry is not one of them. At the Joint Centre for Housing Studies of Harvard University, the Remodeling Futures Program released a recent LIRA that projects growth in repair and renovation spending for 2021. LIRA is short for the Leading Indicator of Remodeling Activity and it forecasts future repair and home improvement spending to owner-occupied homes. It predicts that the first quarter of 2021 will have a 4.1 percent increase and gains of 1.7 percent by the third quarter. The National Association of Home Builders also agree stating that residential remodelers are still experiencing strong demand.
The additional time spent at home has given homeowners the realization that their indoor or outdoor spaces need updating. Outdoor space in particular has seen a massive surge in interest. Saunas, pools, and home gyms have all increased in demand as people look to make their homes more comfortable. After that is the landscape, deck, and patio contractors who are experiencing double the demand from last year. For indoor spaces, kitchens and office spaces have seen the biggest jump in demand. More people staying in means more people cooking and eating at home. Kitchens have quickly become a central hub for families. The increase in people working from home has also seen a rise in the need for a dedicated space for work and videoconferencing calls.
Another reason for remodeling demand is the increase in homeownership, both from those wanting to upgrade and millennials buying their first starter home. Regardless of whether it’s a new or existing home, renovations are always needed. Often a new home is considered incomplete to the buyers and a pre-existing home usually requires upgrades to meet modern standards.
Homeowners are also experiencing record amounts of home equity. According to the real estate data firm ATTOM Data Solutions, 1 in 4 residential properties in the United States are now considered equity rich. This has led to an additional incentive for homeowners to use that equity to fund their remodeling projects.
Staying at home has also caused people to save money. People are avoiding going out to spend money on things like going out to restaurants, movie theatres, vacations, and more. Many have decided to take that saved money and put it back into their homes as they see their home as an important investment.
Another way homeowners are remodeling is in regards to additional family accommodation. Garages and attics are being converted into playrooms for children stuck at home all day. There’s also been an increase in the desire for additional bedrooms as people look to protecting their elderly relatives by having them stay with family.
According to the Home Improvement Research Institute, home wellness renovation projects are also on the rise. Millennial homeowners, in particular, find non-toxic materials used for remodeling a good selling point as well as things like air and water purification systems. Circadian lights have also increased in popularity as this new trend of younger homeowners are carrying a more health-conscious outlook to home improvement.
As you can see, 2021 represents an exciting time for the remodeling industry. With low-interest rates, remodelers are going to see a huge uptick in demand from people to help build their homes into a place they’ll never want to leave.