flexiblefullpage - default
interstitial1 - interstitial
Currently Reading

Home Improvement Spending Expected to Drop

Advertisement
billboard -
Sales — Home Improvement

Home Improvement Spending Expected to Drop

Inflation will continue to hinder growth across the home improvement market, but it’s not all bad news for contractors


By Drew Barto October 18, 2022
Home improvement spending to drop in 2023
Photo: Myst | stock.adobe.com

While incomes are slowly increasing across the country, wages have not yet surpassed the impacts of inflation and higher interest rates. And home improvement spending growth will slow as a result.

The Home Improvement Research Institute (HIRI) recently released its market forecast for 2023 whereby it predicts growth in the total home improvement products market will drop from 7.2% in 2022 to 1.5% in 2023.
 

The Do-It-Yourself Consumer Market Will Flatten

HIRI expects the consumer market for do-it-yourself (DIY) projects to mostly flatten and grow by just 0.6% next year, citing high homeowner activity on such projects during the pandemic also contributing to the reduction in demand. This would bring the consumer market sales total to $386 billion in 2023, with anticipated future growth at an average of 2.2% from 2024-2026.

“As rates go up, affordability goes down,” said The Farnsworth Group President Grant Farnsworth. “I think there’s a big psychological play at work here beyond the inflation piece. There’s a knee-jerk reaction when rates go up and when there are doom and gloom headlines in the media.”
 

How Will Home Improvement Professionals Be Affected?

On the contractor side of the forecast, HIRI projects professional market sales will drop from 10.2% in 2022 to 3.6% in 2023. It predicts the growth of professional market sales to average 3.2% from 2024–26.

Despite this deceleration, the professional market is still expected to grow over the next four years. And that’s good news for contractors who specialize in kitchens and baths, or repair and replacement products such as roofing, windows, and exterior doors.

“Where I think we’ll see some opportunity is in the existing home pro market,” said Farnsworth. “Between having folks feel like they’re locked into a low mortgage rate and with fewer options to buy, fewer people are going to move. That, combined with high home equity, means the market is ripe for contractor spend on existing homes.”


written by

Drew Barto

Drew Barto is director of home improvement for Pro Remodeler. He most recently served as the Director of Marketing at Energy Swing Windows in Pittsburgh. Contact him at dbarto@sgcmail.com or 412-607-7820.


Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and email addresses turn into links automatically.
  • Lines and paragraphs break automatically.
2 + 7 =

Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Related Stories

Pro's Pick: Improve Sales with RillaVoice AI Speech Analytics Tool

This Pro’s Pick allows home improvement sales managers to conduct virtual ride-alongs with sales reps

Marketing Minute: How To Convert Bad Google Reviews Into Business

Director of Home Improvement Drew Barto shares tips on how contractors can turn negative Google reviews into additional revenue

3 Tips for Contractors to Turn Bad Google Reviews Into Revenue

Best practices for responding to Google reviews that will create more raving fans and drive more referral business to home improvement companies

7 Tips for Offering Financing in Home Improvement Sales

How replacement contractors can implement financing into their sales processes to close more leads and increase job sizes

3 Ways to Make Your Home Improvement Brand More Memorable

How replacement contractors can rise above their competitors in the race for brand recognition

5 Marketing Musts in a Tightening Market

Use these tips to help attract more leads in 2023

5 Tips to Overcome a Drop in Demand

What to do and what not to do when home improvement lead flow gets light

How Home Improvement Companies Sell Today

Four replacement contractors reveal their sales processes and what’s changed since before COVID

One Sales Process Does Not Fit All

The home improvement companies that continue to adapt to meet new customer demands will grow the fastest

Are Your Text Messages Getting You Into Trouble?

Find out what happened when a contractor sent two advertising texts to the wrong homeowner

Advertisement
boombox1 -
Advertisement
native1 -

More in Category




Advertisement
native2 -
Advertisement
halfpage1 -