From adding home gyms and offices, to installing decks and pools for the family staycation, home renovation activity spiked in 2020 during the COVID-19 pandemic, with 39% of consumers surveyed nationally by the Freedonia Group in December 2020 reportedly undertaking home improvement projects because of changes associated with the pandemic.
In 2020, this was a saving grace for suppliers from a range of industries – from building materials to power tools – that are contending with the pandemic’s debilitating effects on other parts of the construction industry. The question for many in the industry now is: What will the home remodeling market hold for 2021?
Spending on Remodeling Projects Expected to Increase Modestly in 2021
Though home improvement activity is not expected to return to the levels seen at the pandemic’s onset, the remodeling market of 2021 is expected to resemble that of the second half of 2020, with modest growth in spending expected as homeowners continue to undertake smaller, more economical jobs like bathroom remodeling or installing new floors and remain leery of taking on large-scale projects:
- While the lingering economic impacts of the pandemic will continue to discourage broader homeowner investment in large-scale remodels, Americans who saw their economic conditions improve in 2020 will be able to spend more on their homes in 2021, while others will take advantage of a favorable lending environment to do so.
- The prospect of widespread vaccine availability will also boost consumer confidence while making it easier for work crews to enter homes and complete large-scale projects, such as kitchen remodeling.
Home Renovation Market Opportunities
For more information and in-depth discussion of home renovation market opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in 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.