The Remodeling Market Is Offering A Post-COVID Bounty
Handyman services franchises have, on average, always done pretty well. There has always been pretty strong demand for handyman and remodeling services. But in recent times, we have seen a large increase in the remodeling market.
As The U.S. Economy Continues To Recover From The Damage Caused By The COVID-19 Pandemic, What Are We Learning About Handyman Services Franchises And The Remodeling Market More Generally?
The remodeling market has been a strong one for a long time. While demand can experience temporary dips, it has almost always been steady or growing in recent years. But COVID-19 was unprecedented. As we all find our way back to normal, how does the remodeling market look now?
There are a few key figures worth focusing on. First, Zonda’s Residential Remodeling Index (RRI) posted a 36th consecutive quarter of annual and quarter-to-quarter gains since 2011. Thirty-six consecutive quarters of gains says a lot, but there’s more to it than that. Spending on big-ticket residential remodeling in the first quarter of 2021 increased 10.8% on a year-over-year (YOY) basis and saw a 1.9% increase from the fourth quarter of 2020. According to Zonda, the last time we saw YOY gains as high as 10% was way back in 2005. Remarkably, these figures demonstrate the remodeling market is experiencing both long-term stable growth and record-setting short-term growth. It’s the best of both worlds.
What Do Indicators Say About The Immediate Future Of The Remodeling Market And Opportunities For Handyman Services?
There was a lot of uncertainty about economic stimulus in the third quarter of 2020, but the fourth quarter RRI adjustment indicated that remodeling activity would continue growing. Zonda now projects that remodeling growth will probably flatten in 2022, but that it will begin growing again in 2023.
The reason for this pattern has to do with the economy more broadly. As Zonda states, the U.S. economy still has “a ways to go in its COVID recovery,” and that is likely to cause a cool down in the home market as “interest rates begin to rise”. The RRI now has predictions of average annual growth of 7.4% in 2021, 0.04% in 2022, and 2.0% in 2023. This is good, because it means we have clear understanding of the factors influencing the remodeling market and because the best indicators say this current surge in activity is not a bubble, but rather a temporary acceleration of the long-term growth trends.
Contact Kitchen Solvers To Learn More About The Red-Hot Remodeling Market.
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