While the pandemic has caused countless small businesses to suffer immensely, home renovation and maintenance companies are thriving.
Why are people willing to spend this kind of money during a historical economic crisis?
They're spending more time at home.
When you're confined to your home for the majority of the day, you spend a lot of time focused on things you'd like to change or improve. While most people began with minor tasks such as upgrading fixtures, it soon became apparent that they would be spending much more time at home than they initially considered.
Substantial renovations seemed more necessary to accommodate working and schooling from home. Creating a home office could range from repainting a second bedroom and purchasing a few pieces of furniture to knocking down walls and rebuilding to make adequate space.
Without the option to go out to eat, having a functional and aesthetically pleasing kitchen became a priority.
Similarly, it became more popular to add a gym room to a house. People cherish their exercise routines, and the gym closures threw them for a loop. This abrupt change left them to get creative and replicate the experience at home.
For many families, an outdoor gathering was the only option for seeing loved ones in person. Rather than constantly rely on the availability and safety of restaurant patios and parks, many homeowners opted for building their own outdoor socializing oasis.
Increased time at home also meant that people weren't out and about spending their money on shopping sprees and vacations. Budgets began to build, allowing home improvements to take center stage.
Interest rates are exceptionally low.
Homeowners are finding themselves with a relatively high amount of home equity considering the recent economic downturn. While home prices are still increasing, interest rates are at a record low, making it an ideal time for homeowners to put money back into their property.
Fewer new homes are being built.
If someone was planning on purchasing a new home in the last year, the options were likely few and far between due to the suffering construction industry. The pandemic caused critical logistical problems for construction companies. There was a shortage of materials and equipment, and what was available was difficult to obtain.
This lack of inventory caused many individuals and families to turn their attention to their current homes, investing in renovations to make staying put worthwhile.
As leaders in the home improvement industry, illume Property Partners has been deeply grateful for this rise in demand and opportunity to share our craft with more clients. If you want to jump on board this unexpected trend and invest in a home improvement project, we're ready and excited to guide you through the process! We'll work with you and our experienced contracting partners to ensure your renovation dreams come true.
Sources
https://www.entrepreneur.com/article/367095
https://ihsmarkit.com/research-analysis/best-still-come-us-home-improvement-market.html
https://www.quickenloans.com/learn/home-equity-and-how-to-use-it