March 9, 2021
Home remodeling has surged since the pandemic began, but many of the projects initially were smaller in scope. That is reversing as homeowners decide to go bigger with their renovation plans and beyond the DIY projects that dominated during the early stages of the COVID-19 outbreak.
Homeowners are increasingly undertaking larger remodeling projects, including expanding and rearranging floor plans as they look to create dedicated home offices or increase a home’s functionality, according to the Q4 2020 Kitchen & Bath Market Index, released by the National Kitchen & Bath Association and John Burns Real Estate Consulting. The NKBA projects a 10.7% sales growth for the remodeling industry in 2021.
The rising desire for large-scale projects is prompting homeowners to move away from DIY jobs and hiring professionals to do more robust renovations.
“We’re seeing an incomparable surge in homeowners looking to rearrange floor plans, tear out complete kitchens, baths, and other rooms to make space for increased activity within the home, and generally create a space that better suits their evolving needs,” says Bill Darcy, the NKBA’s CEO. “Our industry’s greatest challenge will be operational, as our members aim to meet growing demand from homeowners with an unmatched appetite for remodeling.”
Indeed, remodeling contractors report a surge in business, but have faced the rising cost of materials and supply-chain disruptions as high demand for cabinetry and appliances has prompted shortages and delays. Contractors also report a shortage in the availability of skilled labor. More than 56% of remodeling contractors surveyed by the NKBA say that COVID-19 has worsened the already tight labor shortage due to the uptick in consumer demand. Consequently, homeowners may have longer to wait for professionals to take on their remodeling projects.
While homeowners are leaning on professionals more as of late for their remodeling projects, they still want to keep their projects' prices lower. Demand for lower-priced products and finishes remains high, the NKBA reports.
“Kitchen & Bath Market Index,” John Burns Real Estate Consulting and the National Kitchen & Bath Association (March 8, 2021)