Did COVID-19 Affect the House Improvement Market?
The Coronavirus outbreak has adversely affected the global economy. It has not spared the U.S home sector. The house improvement market has faced several positive and negative impacts due to the pandemic this year. Some home improvement enterprises have already closed down. Despite that, home remodeling activities in San Diego have increased. According to Business Wire, about 57 percent of proprietors have a hard time working on home improvement projects now. In this article, we discuss three ways that COVID-19 has affected the house improvement market.
1. The Rise of DIY Projects
Do-it-yourself (DIY) projects have strengthened the U.S home improvement market. The sale of décor, building appliances, home enhancements, and building materials has been a great part of this improvement. A study by iProperty Management indicates that by 2025, the revenue for the DIY market will be $680 billion. With many people working from home, homeowners spent about $1,750 in March to May 2020 on home improvement.
The pandemic has provided homeowners with more time to do DIY projects. Also, being at home has made proprietors more aware of home areas that need improvement. Do-it-yourself projects have been amplified in 2020. DIY projects concentrate on exterior projects like fire pits and concrete patios.
2. An Increase in Income Revenue
The homeownership business represents a crucial segment of the U.S economy. Homeownership ranges from real estate, home improvement businesses, proprietorship, and residential properties. According to IBIS World, home improvement sales in America were $394 billion in 2018. The home improvement industry increased by 5.5 percent in 2019.
Estimated by revenue, the Home Improvement Stores sector reached $170.3 billion in the year 2020. The sale of building materials has increased with about 22.5 percent due to DIY projects. With the pandemic paralyzing the economy, experts foresee a 7.6 percent decline in the sector.
3. Cancellation of Home Improvement Contracts
Several contracts between homeowners and remodelers have been canceled due to the pandemic. The change has been due to most homeowners not being at work and the massive decrease in income. Also, the fact that many homeowners are at home, most are opting to do the remodeling themselves. The cancellation of contracts has affected the balance in the home improvement industry.
Due to the pandemic, several subcontractors have not been able to meet work deadlines due to limited labor. COVID- 19 has led to the closure of most building inspection departments. This has made it difficult to issue permits or conduct assessments. Failure to meet work deadlines and informal cancellation of contracts will lead to several legal problems for homeowners, contractors, and subcontractors.
The COVID-19 pandemic has positively and negatively affected the house improvement market. DIY remodeling projects have gained more popularity in 2020. They have allowed homeowners to remodel their homes. If you want to remodel your home but don’t know where to start, call CITY CABINET CENTER at (619)521-2875. Our company deals with the design, supply, and installation of kitchen and bath cabinets in San Diego. Our remodeling experts will enlighten you about different remodeling techniques.
