December 28, 2020
By Eddie Johnson

Forecast for Home Remodeling Contractors in 2021

Source: Kitchen & Bath Designs

Now is the perfect time to reflect and make changes so your home remodeling company can go into 2021 strong. “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,” said Chris Herbert, managing director of the Cambridge, MA-based Joint Center. 

Looking to see what 2021 might look like for your business? “With refinancing activity surging, homeowners are investing in their homes, which is sustaining strong demand for remodeling,” said Tom Ashley, National Association of Home Builders Remodelers chair.

Key Takeaways

  • Good news – moderate gains in homeowner spending for improvements and repairs are expected to continue through much of next year.
  • Despite initial concerns of a possible pandemic-induced downturn, the concerns largely dissipated.
  • The latest LIRA projects annual growth in renovation and repair spending of 4.1% by the first quarter of 2021, with gains softening to 1.7% by the third quarter.
  • Annual expenditures for renovation and repair of the owner-occupied housing stock are expected to rise from about their current level of $332 billion to $337 billion by the latter half of 2021.
  • Recent strengthening of home prices and sales activity, including second-home purchases, could provide further boosts to remodeling and repair next year.
  • Refinancing activity is surging and homeowners are investing in their homes which is creating and sustaining strong demand for remodeling.

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This blog post reflects the opinions of the author and may or may not reflect the opinion of Leap (Leaptodigital.com).