Home Improvement Growth Seen Continuing in 2022

by Anita Shaw

TAMPA, FL — Sol­id market fun­da­men­tals, con­tin­ued COVID-driven demand and lin­ger­ing tail­winds resulting from supply chain constraints, inflation and other challenges point to anoth­er year of “above-par” home improve­ment activ­i­ty in 2022, the Home Improvement Research Institute (HIRI) forecast this week.

According to HIRI, the home improvement industry, including both the professional and do-it-yourself segments, increased 13% in 2021 and about 28% over a two-year span from 2020 through last year, “a feat near­ly unheard of in an indus­try already quite large and established.” When tak­ing infla­tion into account, however, “real” indus­try growth was clos­er to 5%, the Tampa, FL-based HIRI said.

As homeowners became “more com­fort­able” with the idea of hav­ing designers and contractors in their home, the demand for pro­fes­sion­al con­trac­tors increased rapid­ly, with pro­fes­sion­al con­trac­tors report­ing an esti­mat­ed 18.2% increase in sales during 2021, HIRI added.

“It’s no shock that hous­ing is red-hot right now,” HIRI observed. “Even with increased home prices, there has yet to be an increase in home inven­to­ry, indi­cat­ing that there’s still room for the mar­ket to grow.

“This leads to a two-fold uptick for home improve­ment,” HIRI added. “On one hand, home sales often lead to flur­ries of project activ­i­ty as pur­chasers rush to make their new house a ‘home.’ On the oth­er hand, it results in home­own­ers get­ting priced out of the mar­ket and rein­vest­ing in their cur­rent homes with renovations.

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