NAHB Remodeling Market Index for Q1 2021 reported that remodelers are feeling more confident about future conditions.
After a brief downturn during the early days of the COVID-19 pandemic and related public-health stay-at-home orders, confidence in the remodeling market has come roaring back, according to a recent NAHB survey.
In fact, many remodelers are experiencing a backlog of projects as strong demand runs up against a lumber shortage and other building material supply challenges, as well as ongoing labor availability issues.
After causing broad concern about the economic effects of unprecedented social distancing measures in the early stages of the coronavirus outbreak, the pandemic has instead become an important source of the growth in remodeling activity. The survey found that 41% of remodelers reported up to half of their projects were a direct result of the pandemic.
Rising home prices, interest rates
As home prices and interest rates rise, many would-be home buyers are opting to stay put and make improvements to their current homes. Aging-in-place and universal design projects are becoming increasingly popular, especially among older homeowners. Remodelers in the survey said that many of their customers were motivated by a desire for more and better amenities in the home. Consumers’ other desires included a need to repair or replace older equipment and a desire or need for more space.
As always, the survey found that bathrooms and kitchens top the list of the most commonly desired remodeling projects. Survey respondents said that roughly 74% of their projects were primarily bathrooms, while 67% reported that their projects involved kitchen remodeling.