flexiblefullpage - default
interstitial1 - interstitial
Currently Reading

Home Improvement Spending Expected to Drop

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.
leaderboard2 - default

Related Stories

3 Reasons Contractors Should Set Same-Day Sales Appointments

Director of Home Improvement Drew Barto writes that contractors that aren't implementing same-day sales appointments are missing out on opportunities to close more business

How Contractors Can Determine Lead Value

On this episode of Rock Stars of Remodeling, Builder Prime Founder and CEO Jonathan Weinberg reveals how contractors can effectively determine the value of each lead to their business, and why they must do so

3 Traits Sales Managers Need to Succeed

Implementing best practices focused around these attributes can increase sales success for your home improvement business

How Southwest Exteriors Is Killing It with Content Marketing

This non-traditional form of marketing has helped the San Antonio-based exterior remodeler increase its web traffic, closing rate, and average job size over the past 18 months

A Unique Sales Compensation Structure That Increases Retention

How Homefix Custom Remodeling Executive Vice President Nick Roberts created a system to keep his best home improvement salespeople longer

How To Close More Internet Leads

Four techniques home improvement companies can use in marketing and sales to generate and close more web leads

A Sales Compensation Structure That Helps Increase Retention

On this episode of Rock Stars of Remodeling, Homefix Custom Remodeling Executive Vice President Nick Roberts offers insight into his innovative tiered sales compensation structure that has helped increase retention within his sales team

12 Habits of Highly Successful Home Improvement Sales Managers

Sales managers who practice these behaviors will see improved performance from their sales teams

3 Things Top-Performing Home Improvement Salespeople Do Differently

On this episode of Rock Stars of Remodeling, Rillavoice Co-Founder and CEO Sebastian Jimenez Bienen reveals the top three behaviors of successful home improvement salespeople and shares how to better leverage your time in sales

Pro's Pick: Quickpage Video Messaging App for Marketing and Sales

This Pro’s Pick helps contractors earn the trust of customers by delivering personalized video messages at key touchpoints

boombox2 -
halfpage2 -
native1 -

More in Category

native2 -
halfpage1 -
leaderboard1 -