Despite labor shortages in the industry, the remodeling sector is set for growth through 2022, says Leading Indicator of Remodeling Activity (LIRA). LIRA predicts a spending growth of 9.0% through 2021 and into 2022. The report also predicts year-over-year (YOY) gains in annual improvement and repair spending of 12.3% through fall 2022.
This is good news for the remodeling industry which took a hit during the first half of 2020 with COVID shutdowns negatively impacting industry growth. “Residential remodeling continues to benefit from a strong housing market with elevated home construction and sales activity and immense house price appreciation in markets across the country,” says Carlos Martin, project director of the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. “The rapid expansion of owners’ equity is likely to fuel demand for more and larger remodeling projects into next year.”
Despite many challenges faced by the remodelling industry, Remodeling Futures Program associate project director Abbe Will predicts remodelling spending by homeowners could reach $400 billion, “With these tailwinds, annual improvement and repair expenditures by homeowners could reach $400 billion by the third quarter of 2022,” says Will, Associate Project Director of the Remodeling Futures Program. “Yet there are several headwinds that could still taper the expected growth in remodeling spending including the rising costs of labor and building materials, as well as increasing interest rates.”