US & Global Economic Impact Analysis and Forecasts

Freedonia analysts and economists are sharing their insights on how major events are impacting different parts of the US and global economies.

Home Remodeling Activity At High Level, Expected to Remain So Going Forward

Amidst all of the talk of high lumber prices, supply chain difficulties, and the challenge of finding skilled workers for many construction jobs, it is easy to forget that the US home remodeling market remains strong, as US consumers continue to invest in fixing and improving their residences. For instance, in the February-March edition of The Freedonia Group National Online Consumer Survey, 35% of respondents noted they were currently undertaking a home improvement project because of the coronavirus pandemic (aided, no doubt, by stimulus funds delivered this spring).

Even as it appears that the US is slowly turning the corner on the coronavirus pandemic, remodelers across the country report surging sales – and those looking to engage their services report long delays in scheduling the work. A pair of recent articles indicate that this surge in activity is expected to continue going forward.

The first reports that the Kitchen and Bath Market Index – an indicator of the confidence of the kitchen and bathroom remodeling industry – was at its highest recorded level in the first quarter of 2021. The Index, a survey of designers, contractors, manufacturers, and retailers, shows that demand for their services remains elevated. Homeowner interest in these projects remains high as consumers renovate their homes to meet changing conditions caused by the COVID-19 pandemic. From adding bathrooms to accommodate extra family members to remodeling kitchens to include space for a home office/classroom, homeowners are willing to invest in their homes – and kitchen and bathroom professionals are more than ready to do so (once they have the time).

The second reports that overall home remodeling activity is expected to post strong growth throughout the rest of 2021 and into 2022. While kitchen and bathroom activity will account for a significant share of this, other projects will also play a role. Such renovations as adding a deck or swimming pool, converting a little-used room into a home gym or office, or even just the decision to upgrade their home by repainting or installing a new floor are among those that will be undertaken by a homeowner. This, in turn, will drive demand for a wide range of building and construction materials, from cabinets to paint to flooring materials.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.