The Home Improvement Research Institute (HIRI), the nation’s leading resource for market research concerning the home and building products industry, forecasts the total U.S. building products market will build on its already exponential growth of 2020 and 2021. HIRI predicts the total market will grow from 2023 through 2025 an additional 2.9 percent, the consumer market will grow 2.3 percent and the professional market 4.6 percent.
“The home improvement industry had explosive growth during the Coronavirus pandemic due primarily to DIY projects, but that may now be driven by pros,” says HIRI research director Matthew Craig. “We are glad to now provide the home and building industry some insight into what they can expect as we continue to navigate a post-pandemic world.”
The forecast found the total building products market will grow by 13 percent in 2021, predicting huge gains in the short term. Looking into 2022, the growth for the total market is expected to be 2.3 percent, with only a 0.2 percent increase for the consumer market but a 7.1 percent increase for the professional market. The numbers indicate fewer DIYers will take on projects, but professional contractors should see a boom with projects on hold because of the pandemic being resumed.
“The strong home improvement outlook provided by pandemic behavior has been given new life by this year’s improved employment gains, increased access to vaccinations and additional stimulus measures. All have boosted consumer confidence and the housing market in particular,” says IHS Markit managing director Scott Hazelton. “While the boom cannot last forever, a continuing strong economy suggests spending by contractors will actually improve year-over-year as households feel more comfortable with contractors in their home.”
Top growing merchandise lines for professionals:
Compound annual growth rate for the professional market between 2021-2025:
- Siding and exterior trim: 11 percent
- Gypsum and specialty boards: 9.5 percent
- Dimensional lumber and boards: 8.4 percent
- Roofing and supplies: 8.2 percent
- Doors and molding: 8 percent
- Kitchen and bath cabinets: 7.9 percent
- Major household appliances: 7.9 percent