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Home Renovation Trend Shows No Sign of Ending

Home Renovation Spending Surged During the Pandemic

Home renovations surged during the pandemic as people sick of staring at an outdated kitchen or looking for a backyard getaway poured money into their homes. Many of these projects were already on homeowners’ to-do lists before the pandemic. Then, shutdowns gave them the time and extra savings to make their plans happen. Spending on home improvements jumped 15% in 2020 and more of the same is expected this year—even as pandemic restrictions end.

Part of the rise in spending can be attributed to increases in the cost of labor and supplies. Pandemic restrictions and shutdowns caused supply-chain issues and worker shortages, which has driven up the cost for everything from lumber to drywall.

Kitchens, Home Offices, and Outdoor Spaces Get a Revamp

Many of the recent home renovations have and will remain focused on three areas: kitchens, home offices, and backyards. Kitchen renovations took up the most money last year, with spending on remodels of large kitchens increasing 14%.

Consumers also poured money into their home offices, spending 10% more on these renovations in 2020. Money also went to outdoor spaces with homeowners spending 25% more to upgrade porches and decks. Challenges such as finding service providers, higher prices, and delays in getting supplies, did not prevent homeowners from moving ahead with their projects.

Spending Pace May Slow

Spending on home improvements is not expected to stop now that life is returning to normal.
Hybrid work models are becoming the norm at many companies. This means people will continue to spend money on home offices and outdoor spaces. However, there may be fewer DIY home improvement projects in the upcoming months as people have more options for entertainment.

Spending on home improvement is still forecast to increase 4.8% by the first quarter of 2022. The pandemic has changed the way people view their living spaces, causing many to pour time and money into upgrades. It will be interesting to see if that trend continues in a post-pandemic world.

Looking to remodel your home this summer? The price for an average home in the US was up 11.6% as of the end of April. With a cash-out refi, you can turn the equity in your home into cash. Check your rate in two minutes.

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