Washington, D.C.—Spending on residential remodeling will continue to grow at a healthy pace over the next two years, according to experts speakers at an online press conference hosted by National Association of Home Builder (NAHB) remodelers during the 2021 IBSx.
The residential remodeling market declined significantly at the onset of COVID-19 in March and April 2020 but has since more than fully recovered. NAHB predicted that remodeling spending for owner-occupied, single-family homes will increase 4% in 2021 and increase 2% in 2022. “The biggest factors prohibiting stronger growth are mainly the volatile material prices and labor shortages,” noted Paul Emrath, NAHB’s assistant vice president for surveys and housing policy research.
Professional remodelers from across the country agreed with the forecast, citing increased demand during COVID-19 and consumer confidence. For example, Vince Butler, a remodeler from Clifton, Va., said, “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. 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.”
Tim Lansford, a remodeler from Arlington, Texas, added, “We’re seeing more requests for proposals because of the pandemic. Because people are using their time at home now to remodel, the demand and backlog for remodeling remains high.”