NAHB expects healthy remodeling growth
Residential improvement expenditures are expected to grow at a solid pace through the next two years, according to the National Association of Home Builders (NAHB).
While the remodeling market suffered setbacks at the onset of COVID-19 in March and April 2020, it has since more than fully recovered.
The NAHB predicts that remodeling spending for owner-occupied single-family homes will increase by 4% in 2021 followed by a 2% increase in 2022. The association delivered its forecast during the 2021 International Builders' Show virtual experience (IBSx).
"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, Va. "There is steady consumer demand as Americans are at home much more during the pandemic. This gives homeowners more time and a desire to invest in their homes."
"We're seeing more requests for proposals because of the pandemic," 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."
Like the residential construction, hurdles are holding back an even bigger flourish of remodeling growth.
"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."