Monday Market: Remodeling Trends By The Numbers

Renovations surged during the pandemic – and have not stopped yet.

There is no place like home, especially when you’ve taken the time, energy & money to make it your own! Based on data from the Joint Center for Housing Studies of Harvard University and their Leading Indicator of Remodeling Activity (LIRA) report, US homeowners are continuing to spend money on home improvements and projects, albeit at a slightly slower pace than during the peak of COVID-19.

Q3 calculations for home spending on remodeling are expected to come in at $5 billion more, landing at $477 billion. This projection is based on building material sales and the number of remodeling permits issued.

Here is a little statistical breakdown of when renovations roared and where we are at today:

- The ‘big boom’ of remodeling started during the pandemic and lasted about 3 years – with spending growth on home projects jumping 10-15%

- 63% of homeowners prefer to remodel their current homes instead of moving into already upgraded residences

- 35% of homeowners are making improvements to repair damage, while an equal number, 35%, cited increased comfort as a driving force

- 31% of homeowners also state that personalization is key, while 30% are also keeping ROI and future value top of mind

- Renovations do not always come up roses; 41% of homeowners report significant delays and 78% admit they went over budget in their last completed project

- The most common major upgrades are bathroom remodels (37%), interior painting (33%), and heating and air-conditioning upgrades (30%)

- The most common minor renovations reported are new faucets (36%), new light fixtures (35%), and small kitchen updates (34%)

While the rate of remodeling is only expected to grow 1.2% as of Q3 calculations, Abbe Will, (Associate Director of the Remodeling Futures Program at LIRA) declares that there is “…still a phenomenal amount of spending—way more spending than what we saw in 2019, before the pandemic.”

Perhaps one silver living of a very dark cloud is that we learned to truly embrace the importance of home, take great pride in it and curate our residence as a true sanctuary for the lifestyle that brings out the best in each of us.

Cheers to where the heart is,

Bobbi

Resource Used: America’s Renovation Boom Is Leveling Off—but Still Going Strong (Realtor.com®)