The remodeling industry faced challenges in 2021 unlike any year prior. Extreme supply chain pressure, multiple waves of material and labor cost increases and shortages, and a sharp increase in demand for larger-scale remodels were seen nationwide. Lifestyle changes during the pandemic were no longer temporary, and homeowner requests for functional, customized remodels poured in across the country. As we settle into 2022, here are a few insights into what we can expect for the remodeling industry this year.
Home Remodeling Boom Continues
This year, industry leaders and reporters agree that the boom of remodeling will only continue. After being consistently stuck at home for nearly two years, families are starting to travel again, dine at restaurants, and attend more events. Home renovation to-dos are still prominent, and the need for competent contractors has become even more invaluable as homeowners find themselves with little time nor expertise to tackle them alone.
Business Insider reports that there will continue to be an ever-growing demand for professional home remodeling services in 2022. People are actively seeking competent remodeling pros for trade-focused renovations to save time and prevent headaches. Business Insider also concludes that partnering with a reliable remodeler often yields a more successful project outcome for homeowners than if they had tackled the project themselves piece by piece.
Increased Supply & Demand
A continually-increasing demand for home remodeling projects means the supply of building materials nationwide must increase as well. In their Products Market Forecast, the Home Improvement Research Institute (HIRI) predicts the total U.S. building material market to continue building on the tremendous growth seen in 2020 and 2021. In fact, the total building products market is forecasted to grow another 2.9% from now through 2025.
While previous market growth can be attributed to a combination of contractor purchases and DIY projects by homeowners, future growth is expected to “continue further in the professional products market as COVID-19 restrictions ease and projects once on hold resume,” according to HIRI. Demand for professional building products will increase in 2022 and beyond as homeowners increasingly turn to contractors to complete home renovations.
Investing in Home Life
The housing market remains tight as demand is high and supply is limited. As a result, homeowners will continue focusing inward to improve their existing home life with larger-scale kitchen, bath, and basement remodels, as well as additions. The function and flow of a home can heavily impact the overall quality of life families experience, and today home remodels are perceived widely as impactful investments and not just a luxury expense.
“There’s also been a strong appreciation of the value of existing homes, so that provides a motivation for homeowners to remodel as an investment. And it also provides a source of equity that they can tap into,” says Paul Emrath, vice president of survey and housing policy research for the National Association of Home Builders in an interview with Business Insider.
There are many homeowners who put major home renovation projects on hold at the beginning of the pandemic but now feel comfortable allowing contractors into their homes. This backlog of paused projects combined with those who have a new remodel on their 2022 to-do list has swamped project calendars for contractors nationwide.
Companies like Home Depot and Lowe’s are experiencing pent-up material demand from remodeling professionals as homeowners feel comfortable inviting contractors back into their homes. CNBC found that homeowners across the country are already leaving home more. While home remodeling projects are still at the top of the to-do list, homeowners would rather pay reliable professionals to handle the work than face a list of DIY projects.
What This Means For Our Team
The heart of our team here at Advance Design has always been and will continue to be focused on the remodeling experience. 2021 was a strong and successful year for our team despite industry challenges, and we look forward to bringing more functional, unique spaces to life for our clients as we celebrate our 30th year of business.
We have learned to expect and adjust to unpredictable product delays, timeline adjustments, and price fluctuations. While there will always be unexpected challenges that arise when tackling a remodel, our team will be with you every step of the way to find solutions and deliver a rewarding remodeling experience. Our Common Sense Remodeling process ensures our team is providing the best possible product and service with an end result that will prove to be a long-lasting investment you love.
“We are busy and requests continue to pour in. Everyday lifestyle changes that have driven home renovations thought originally to be temporary have now become a way of life. The answer is if you haven’t already, now is the best time to renovate,” says ADS co-owner Christine Jurs.
If you have a remodel you’re planning to complete this year, it’s important to get on our project calendar as soon as possible. We have many exciting projects on our calendar already, and we want yours to be one of them! For project inspiration and insight as you plan your remodel, check out our last blog, as our designers share the home design trends they expect to see in 2022 and beyond. Schedule a consultation with one of our designers today to take the first step.