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.