2020 and 2021 are years that we will all surely remember. As the pandemic occurred, the housing market simultaneously increased as stimulus drove down lending rates. With low interest rates and home owners staying inside their houses more than ever before, the home improvement market has soared while other industries have been adversely affected like brick and mortar retail. With more home improvement options out there, it’s no wonder home improvement is where the US has decided to spend it’s hard earned money amidst a pandemic.
According to the home improvement research institute, property owners have been investing in home improvement spending which has led to more DIY home improvement projects.
While it’s exciting for property owners to embark on home renovations, it’s important to understand home improvement industry trends, statistics, consumer spending, and growth rate as we see home prices rise and also look at the market size.
Let’s take a look at the home improvement research institute, home improvement markets, trends, and stores to take your remodeling project to the next level.
Home Improvement Market Trends In 2021
Whether you’re a first-time homeowner wanting to remodel one or more single-family homes or a homeowner seeking property improvements for energy efficiency, here are 30 statistics to help get the remodeling ball rolling and are investing heavily in appliances.
1) Home appliance searches have increased by 26% in the last 12 months
2) An 8.5% increase in revenue for home improvement companies
According to statistics from IHS Markit, when it came to getting a sale for home improvement services, companies saw an increase of up to 8.5%.
This occurred mostly because more people (including baby boomers) were researching the remodeling industry online.
Companies in the remodeling industry that would reach out immediately to new leads through phone calls, text, or email would close deals 20 times faster than their competitors that did not.
3) Home Remodeling Searches have more than DOUBLED from 2020 to 2021
(Google Search Trends)
4) Kitchens remain the most renovated room in the home
(Google Search Trends)
Google search trends for the home improvement industry indicate that in the last twelve months, kitchen remodeling has increased by 23%.
With more homeowners stuck indoors, they seem to want to maximize on time spent enjoying spaces they spend most of their time in.
An added benefit to kitchen renovations is that your home can be sold at a higher price in the housing market.
5) 22% of homeowners will spend between $5k and $15k on projects
(U.S Census Bureau)
This data comes from the U.S Census Bureau.
They revealed that the home improvement stores, the remodeling industry, home improvement markets, and building materials suppliers have not been impacted by the pandemic.
This industry is expected to grow throughout 2021 where many consumers are buying their remodeling supplies online through websites.
It is also recommended that contractors sell their services online to remain competitive and gain alternative streams of revenue.
6) 12% increase of conversions from organic traffic from 2019 into 2020
Online advertising for the home improvement market has been booming and this trend is unlikely to change anytime soon.
According to Hatch statistics, in 2019 there has been a 12% increase in conversions for home improvement retailers online.
The ability to buy home improvement products online and have them delivered for home renovation projects is growing in popularity.
7) 76% of homeowners aren’t traveling in 2021
(U.S Census Bureau)
This statistic revealed that many people in the US aren’t planning on traveling this year.
This leaves more time for DIY projects for homeowners and time to build consumer confidence in brands that deal with the construction industry, disaster repairs, system upgrades, and remodeling.
8) Home improvement industry is worth $120 billion for products alone
(Home Improvement Research Institute)
According to HIRI, the home improvement industry is worth $220 billion per annum and this figure is likely to rise.
9) Home Depot made $110.2 billion in the last fiscal quarter of 2020
(The Home Depot)
Home Depot is the most popular home improvement retailer in the US and has surpassed fiscal expectations amid the pandemic.
This is $12 billion more than they made in 2018 where they made $97.3 billion in that fiscal year.
10) Ace Hardware leads in customer satisfaction for all DIY home improvement stores
While this figure is from 2019, it’s still relevant two years later. 840 people out of 1,000 ranked the company the best in the industry.
11) Smart homes are predicted to be worth $53.5 billion in 2022
This is important if you plan on selling your home shortly.
Focus on renovations that have eco-friendly solutions and built-in technology.
Including efficient air conditioning and heating systems for added home values is an added advantage.
12) 39% of homeowners in the US will pay for their projects in cash
(US Census Bureau)
If you were worried about paying home improvement professionals with cash, don’t worry about it.
Some prefer this method.
13) More than 50% of homes in the US were built before 1980
Statistics show that a large number of American homes need remodeling solutions.
A report from NAHB states that 12% of homes were built between 1970 and 1980.
14) Home improvement is more popular for married people than for single people
The home improvement market is more appealing to married couples.
These homeowners would want home improvements for better home equity, room additions, and lower mortgage rates through refinancing.
15) 52% of Americans will spend $15,000 on home repairs in 2021
(Home Renovations Statistics and Trends)
With climate change wreaking havoc in many states as well as the dilapidated state of many older American homes, the demand for home repair services has gone up.
16) Investments in infrastructure will reach $57 trillion in the US by 2030
The United Nations Development Program estimates that 57 trillion dollars will be invested in infrastructure in the US for rapid urban expansion by 2030.
With a growing global population and more people buying homes in urban areas, it makes sense that so much money will be spent on infrastructure.
17) Spending on house improvement is growing at twice the rate of other retail categories in the US
Pandemic challenges are going to exist through 2021; therefore more homeowners are investing in remodeling their homes.
With the closure of gyms, some homeowners have invested in a workout space or an outdoor pool.
Alternatively, with restaurants closed, some homeowners are investing in a bigger kitchen seeing as they spend more time cooking at home.
18) Customer credit utilization has decreased by 30%
The 2020/2021 timeframe has been very volatile especially with the economy going into a recession with an uncertain political climate.
Everyone; including those with large disposable incomes are less likely to use credit for frivolous spending and will be more mindful of unnecessary debt.
19) €55.5 billion was spent on DIY and renovations in the UK alone
In US dollars, that’s roughly $69.27 billion and so it seems that DIY and home renovations have been popular ventures in North America and Europe.
20) 75% of homeowners would like to finance part of their project as opposed to taking a loan
Financing a renovation project goes a long way to keeping costs low and avoiding steep interest rates that can come with getting a loan.
If financing the whole project is not possible, having multiple financing options is crucial to finishing a renovation project.
21) Homeowners worried about insurance can remodel five areas to decrease their insurance
If you would like to lower your insurance rates, consider renovating or including an alarm system, installing or updating your HVAC system, updating plumbing and electrical work, re-roofing your home, and installing gas and smoke sensors.
These home improvement projects will lower your home insurance costs and increase home equity.
22) 34% of DIY projects are done by younger people which is more than their older counterparts
34% of homeowners under the age of 34 are more likely to make DIY home improvements which are more than their older counterparts. Older homeowners between the ages of 45-54 are only 18% likely to do DIY home improvements on their homes.
23) Homeowners are 4 times more likely to use finance applications in 2020
Staying at home has meant becoming more tech-savvy for older generations.
The rise in the utilization of finance applications has been created through older homeowners using technology more often since they are stuck at home.
Another reason is that more millennials have been purchasing homes and have been using finance applications to buy homes because of lowered interest rates.
24) Mortgage refinance applications rise 79% in 2021
Homeowners have been taking advantage of lower interest rates that refinance applications have been offering homeowners.
As of 2021, refinance applications have risen a whopping 479% from last year.
25) Mortgage applications in the US have risen by 55.4% in the last year
Big drops in mortgage rates have caused an increase in borrowers looking to refinance their home loans.
This made volumes of mortgage applications increase by 192% from last year’s average.
26) There are four major causes of death in the construction industry
(US Department of Labor)
If you plan on attempting any kind of DIY construction work then this statistic is right up your alley.
The leading causes of death in the construction industry are; electrocution, fatal falls, accidental hits with objects, and being caught in between objects.
27) There is an approximated 130% increase in month to month sales in the industry from March to May
The home renovation industry approximates that they will see an increase in sales of 130% from March to May 2021.
28) 55% of homeowners plan to begin or continue renovation projects this winter
(U.S Census Bureau)
Apart from lugging materials to your home in the snow, winter is the perfect time to do in-home renovations.
It gives you time to have your home summer-ready and picture-perfect to enjoy summer post-COVID.
It seems like 55% of American owners agree with these sentiments!
29) 40% of consumers have a new hobby involving tools or home improvement
(Research and Markets)
40% of consumers and homeowners report that during the pandemic, they picked up a hobby that involved tools or home improvement projects.
59% said they would spend a portion of their money that went towards other expenditures on home improvement.
30) By 2025, 56% of all remodeling will be done by baby boomers
This would be an increase of about 25% from 2005.
This figure makes sense because baby boomers would like to remodel their existing homes for appropriate aging-in-home renovations.
31) In New York, Los Angeles, and Chicago, projects will go up to 9-10% in 2021
(Harvard University; LIRA )
In these three cities, remodeling projects are projected to go up by 9-10% this year.
This is partially due to large spread urbanization in big cities as well as larger disposable incomes as the effects of the pandemic start to wane.
32) Some major U.S cities will have a 30% increase in remodeling spending
Major cities like Austin, Texas; Naples, Sarasota, and Fort Meyers, Florida will have a whopping 30% increase in remodeling expenditures in 2021.
Home Improvement Research Institute
The home improvement research institute (HIRI) is a nonprofit organization dedicated to giving data on the home improvement industry.
They also give information to homeowners and retailers on how to make better business decisions based on market research data for market size, market share, and housing prices.
Market research data and statistics that HIRI churns out every year is vital.
The data collected will guide homeowners on where to concentrate their renovation efforts for added profits if they sell their homes.
Additionally, it gives them insights on where to renovate to gain customer confidence as well as increase homeowner equity.
The Bottom Line
The home improvement market and remodeling industry as a whole that has been left virtually unscathed during the pandemic.
From online markets to DIY projects, statistics show that the industry is going to be quite profitable in the foreseeable future.
Starting your renovation projects now might be the best investment you can make, especially with many low-interest refinance and mortgage options on the table.
Renovating now is cheaper and more affordable than it has been in a while and it can even come with the added bonus of lowering your interest rates and adding home equity.
So, what are you waiting for, contact Kitchen Infinity today?