Remodeling spending on single-family homes reached $158bn in 2019
Professional remodelers estimated that spending on home improvements would soften this year before recovering in 2021, according to the National Association of Home Builders.
At a press conference in Las Vegas, the NAHB forecasted that remodeling spending for owner-occupied single-family homes would decrease by 0.6% in 2020 before rising 1.2% in 2021.
Labor shortage poses one of the biggest hindrances to spending growth on home improvements, according to Paul Emrath, assistant vice president for surveys and housing policy research at NAHB.
“Remodeler certainty continues to remain at a high level, as remodeling spending reached $158 billion in 2019,” said 2019 NAHB Remodelers Chair Tim Ellis. “Although there is steady consumer demand in all areas of the country, the biggest challenge continues to be the cost of and lack of skilled labor to meet the interest.”
“We’re not only seeing more requests for proposals because the housing stock is limited, but also a higher request for aging-in-place work because boomers want to stay in their homes longer,” said Nick Scheel, a remodeler from Spokane Valley, Wash. “Because people are choosing to stay in their homes, the demand and backlog for remodeling remain high.”
