Sheltering at home for months has altered many families’ lifestyle priorities fueling a boom of home improvement projects. More than three-quarters of all U.S. homeowners said they have done some type of home improvement project during the pandemic, according to a recent survey by Porch.com.
“The remodeling market was buoyed through the early months of the pandemic as owners spent a considerable amount of time at home and realized the need to update or reconfigure indoor and outdoor spaces for work, school, play, exercise, and more,” said Chris Herbert, managing director of the Joint Center for Housing Studies. For many, money saved from not going out to restaurants or traveling on vacations, is being redirected into their homes as an investment.
Kitchen and bath improvements have always been popular remodeling choices, but even those saw a 40% jump in demand in June compared with a year ago. More people are cooking and eating at home, and kitchens are now the center of family life more than ever.
Home extensions and additions jumped 52%, and security and privacy also saw much greater demand with interest in fence installation and home repairs up 166%.
Many homeowners have likely been spurred on from the record high amount of home equity they now have as demand for housing soars. Just over 15 million residential properties were considered equity-rich in the second quarter, meaning mortgages on those properties was 50% or less than the value of the home, according to ATTOM Data Solutions. That is 27.5% of all mortgaged homes in the U.S., up from 26.5% in the first quarter.
While homeowners may continue to do more projects throughout the fall, some experts predict spending will decrease. Harvard’s Joint Center for Housing predicts annual declines in renovation and repair spending of 0.4% by the second quarter of 2021.
But for now, more than three-quarters of those surveyed have said they plan to take on a new project in the next 12 months. According to the report, the top motivator was, “finally having the time.” Next was “adding value to the home” and, finally, making the home “feel more cozy.”
Interesting Statistics:
-Houzz, an online home remodeling platform, reported a 58% annual increase in project leads for home professionals in June.
-Those working on outdoor spaces saw the biggest increase in demand, with searches for pool and spa professionals three times what they were a year ago. Pool demand is so strong that even Wall Street investors are taking note. Poolcorp, an international distributor of swimming pool supplies, parts and outdoor living products, hit an intraday all-time high this week and is up over 54% this year.
It's easy to feel overwhelmed when your family starts to outgrow your home. If you've considered moving up, now is a great time to act. Feel free to reach out to me to see if now might be the right time to Buy, Sell, or Invest in a new property.
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