The Home Improvement Industry Is Blooming. But Will It Last? The COVID-19 pandemic gave home renovation a huge boost during 2018. As people spent more time at home than usual, many took to beautifying their spaces through DIY projects or hiring contractors, decorators or handymen for DIY jobs. Contractors, decorators and handymen benefited immensely, while recent mortgage rates have reduced real estate transactions which may have kept money for renovations instead of real estate sales. It appears likely that the trend will continue until 2023 at least.
According to the National Association of Realtors, home improvement spending was up 16% year over year in 2022 compared to 2021. From repairs to updating their space for comfort or functionality purposes, the demand is clear.
Though home improvement projects remain popular, experts predict that their momentum may slow in 2023. A survey published earlier this year by Today’s Homeowner revealed that about half of Americans intend to decrease their budgets for renovation projects next year; 28% claim to spend considerably less than they did in 2022.
However, it’s important to keep in mind that those seeking to reduce their home improvement budgets typically aren’t cutting back on projects entirely; they focus on small updates with lower cost per update, such as changing lightbulbs or patching small leaks in their plumbing, upgrading outdated appliances or simply making their homes feel newer without spending an excessive amount. The objective is making their homes feel modern without spending an arm and leg on upgrades.
DIY projects have seen increased popularity due to online tutorials such as YouTube. YouTube and other video platforms provide how-to information, giving rise to a new generation of homeowners who prefer doing their work themselves rather than hiring professionals. As we come closer to an end of pandemic and prices increase, consumers have become more wary about investing money into home renovations which may not pay off when economies falter in future years.
Home improvement companies stand to benefit greatly from this trend, including contractors, decorators and handymen as well as retailers like Lowe’s and Home Depot whose profits and sales increased substantially during COVID-19 lockdown. It also benefits the economy overall as more money is spent on these projects instead of buying new properties.
