The Home Improvement Research Institute (HIRI) took a look back at the home improvement industry in the past year and shared its top three takeaways going into 2022. According to preliminary estimates, the home improvement industry grew 13 percent for the entire year and 28 percent over a two-year span.
Professional contractors made a comeback. In 2020, more than half of homeowners opted to take home improvement projects themselves, according to Liza Hausman, vice president of industry marketing at Houzz. As the year went on, people were more comfortable having others into their homes and started relying on professionals again. Professional contractors reported an estimated 18.2 percent increase in product sales in 2021.
Supply and labor issues still linger. Despite increased demand, the home improvement industry still suffered from supply chain issues and a tight labor market, leading to inflation. When taking inflation into account the “real” industry growth is closer to five percent, compared to the 13 percent nominal growth seen overall.
The housing market continues to influence home improvement. When the market is hot, so is home improvement, thanks to many homeowners updating their homes to sell or making improvements after purchasing. Because housing prices are high right now, it’s also led to homeowners deciding to remodel instead of purchase, leading to more sales for home improvement.