Home Improvement Spending Expected to See 2021 Gains
Home improvement project budgets have decreased due to the pandemic, but the Joint Center for Housing Studies of Harvard University says there will be moderate gains in homeowner spending through most of next year. By the first quarter of 2021, it is predicted that renovation and repair spending will see an annual growth of 4.1%. By the third quarter, these gains will drop down to 1.7%. The growth is still below pre-pandemic labels, but could be bolstered even more by the current home sales activity.
“The remodeling market is bouncing back from the initial shocks caused by the pandemic, as homeowners continue to spend significant time in their home and are adapting it for work, school, and leisure,” says Chris Herbert, Managing Director of the Joint Center for Housing Studies. “The surge in DIY and small project activity is lifting the remodeling market, but it remains to be seen if the strong sales market this summer translates into larger improvements that would drive even stronger growth in the coming quarters.”
“Annual expenditures for renovation and repair of the owner-occupied housing stock are expected to rise from about $332 billion today to $337 billion by the latter half of 2021,” says Abbe Will, Associate Project Director in the Remodeling Futures Program at the Center. “While a softening of growth is projected in 2021, recent strengthening of home prices and sales activity—including second home purchases—could provide further boosts to remodeling and repair next year.”