After Patiently Waiting for the Housing Boom to Cool Down, the Renovation Industry is Poised to See A Boom of its Own

While the recent numbers have indicated that the COVID-proof, red-hot housing market is slowing (from a breakneck pace, the numbers indicate that the housing market is still in an incredibly strong place for sellers) and the cost of new construction is becoming more expensive (thereby reducing profits and the incentive to build new homes in the first place), the remodeling industry appears to be poised to experience its own boom.
Experts believe that homeowner spending will increase by 4.8% in Q1 2022, when compared to Q1 2021. Part of this increase is premised on the assumption that there will be less DIY projects as homeowners become more comfortable with having strangers in their homes. Another assumption is that homeowners have more money tucked away because of the pandemic; specifically, the argument goes, because homeowners were unable to go out and spend money, they must have saved that money. The final piece of logic behind these predictions is that the more sellers and buyers there are, the more the remodeling business benefits; approximately 30% of all renovations are performed within the first three years of home ownership.
If you’re reading this, then the backlog for reputable renovation and design firms has nearly doubled over the last two months; the construction wait time for remodeling has increased by approximately 9.3 weeks during Q2 2021. With that said, some renovations provide great return-on-investment (“ROI”) and should be made to every home (until they stop providing ROI because of how common they are). Unfortunately, what those improvements are is beyond the scope of this article.
At the Chernov Team we understand that knowledge is power and knowledge of which sectors of the housing market are booming is powerful knowledge indeed. At the Chernov Team, we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.