Residential Remodel Spending Will Continue Growth for Two Years
Washington, DC, February 15, 2021-Spending on residential improvements will continue to grow at a healthy pace over the next two years, according to experts speaking at an online press conference hosted by NAHB Remodelers during the 2021 IBSx. Professional remodelers from across the country agreed with the forecast, citing increased demand during COVID-19 and consumer confidence.
The remodeling market declined significantly at the onset of COVID-19 in March and April 2020, but has since more than fully recovered. NAHB predicts that remodeling spending for owner-occupied single-family homes will increase four percent in 2021 and increase two percent in 2022.
“After the dip at the beginning of the pandemic, remodeler confidence bounced back, and it continues to remain at a high level, as remodeling spending is expected to reach $285 billion in 2021,” said Vince Butler, a remodeler from Clifton, Virginia. “There is steady consumer demand as Americans are at home much more during the pandemic. This gives home owners more time and a desire to invest in their homes.”
“We’re seeing more requests for proposals because of the pandemic,” said Tim Lansford, a remodeler from Arlington, Texas. “Because people are using their time at home now to remodel, the demand and backlog for remodeling remains high.”
“NAHB estimates that real spending on home improvements will continue to increase in 2021 and 2022 throughout the COVID-19 pandemic,” said Paul Emrath Ph.D., NAHB’s assistant vice president for surveys and housing policy research. “The biggest factors prohibiting stronger growth are mainly the volatile material prices and labor shortages.”