Industry recovers from COVID-19 pandemic
Despite major price hikes in lumber prices and other construction costs, contractor sentiment in the remodeling market continued to improve.
“The remodeling market took a hit last year at the start of the pandemic, but it’s completely turned around now,” said NAHB Remodelers chair Steve Cunningham. “Remodelers are now facing intense backlog on projects due to supply chain delays, continued labor shortages, and an abundance of project leads.”
Around 5% of remodelers reported that more than half of their home improvement projects were a direct result of the pandemic, according to a survey conducted by the National Association of Home Builders (NAHB) Remodelers.
The survey revealed that 74% of all projects were bathrooms, followed by kitchens (67%) and whole house (51%). Most respondents cited the desire for better or newer amenities as their main motivation for remodeling. Others wanted or needed more space, while others said they had to repair or replace older components.
As of August 2020, 58% of homeowners were looking to renovate within the next year, up 5% from March 2020, a survey from Discover Financial Services showed. However, many of them are facing a major roadblock: sky-high construction supply prices.
According to NAHB, lumber prices – which have tripled in the last 12 months – have added $35,872 to the market value of an average new single-family home and roughly $13,000 to the price of an average multifamily home.
“As homeowners continue to make modifications to their homes, it’s important that they do their research and hire a qualified professional,” Cunningham said. “Whether it’s a small project or a whole house remodel, a qualified professional remodeler can help homeowners create a space that works for them.”
