Home DIY Boom Drives Demand for Home Improvement
Americans are spending more time at home during COVID-19. It has put pressure on the convention and exhibition industry, tourism, and social events, with many homeowners taking time out to work on their home improvement projects, and the home improvement industry has been booming. Many residents go to work renovating their homes, resulting in record home improvement spending. U.S. homeowners spend more than $400 billion annually on do-it-yourself (DIY) projects, renovations, and home repairs, according to the Harvard Joint Center for Housing Research's "Improving American Housing 2021" report. This number has increased significantly over the past two years as people change their living spaces for work, homeschooling, and completing general upgrades while working from home during COVID-19.
The DIY Home Improvement Retailing Market Share is expected to increase by USD 154.76 billion from 2020 to 2025 with an accelerated CAGR of 5%, according to the recent market study by Technavio. By 2022, the U.S. home improvement store industry market size will reach $235.3 billion. From 2017 to 2022, the market size of the home improvement store industry in the United States grew at an average annual rate of 5.3% and is expected to grow by 1.5% in 2022.
According to a recent study by BlueWave Consulting, a strategic consulting and market research firm, the global home improvement market will be worth $333.7 billion in 2021. The market is expected to grow at a CAGR of 6.40%, with revenue reaching around $514.9 billion and reaching $1 billion by the end of 2028.
According to CouponBirds data, a well-known coupon site that offer coupons and saving tips for consumers, people’s search queries to do with coupons from home improvement merchants are increasing since the end of 2021 and are expected to continue to surge in 2022. Search queries increased 110% in the first quarter of 2022 compared to the same period in 2021, and grow 126% in the second quarter compared to the second quarter of 2021. The rising demand for home entertainment and improvement is the key factor that drove the growth.
According to a December 2020 nationwide survey by Freedonia Group, 39% of consumers reported that they have undertaken a home improvement project due to changes related to the pandemic. Some have added home gyms or home offices, installed decks or pools, added a patio design, or painted their living space. A 2021 survey by Minneapolis, Minnesota-based marketing firm Axiom asked consumers about their home improvement plans for 2021. According to Axiom's Homefront Insights Survey, more than 90% of DIYers said they plan to spend as much as possible compared to last year and have more time for home projects in 2021. Gardening and landscaping jobs were the most popular answers among Axiom respondents. 31% said they plan to work in the outdoor area, and 25 percent said they plan to renovate or build a patio. During the pandemic, with bars and restaurants sometimes closed, the demand for family entertainment areas has been increasing. 35% of homeowners planned to complete garden or landscaping projects in 2021. 31% said the same about bathroom projects, while 27% planned to upgrade their kitchens, and 26% planned to do bedroom projects. 25% wanted to work on their deck or patio, and 16% had plans for their home offices. As of 2019, the average cost of a small kitchen remodel is $22,500. Kitchen additions and upgrades are likely to lead the market share. The largest increase in kitchen upgrades and extensions is expected to exceed 5% by 2027. The percentage of homeowners upgrading their outdoor space increased from 56% in 2019 to 57% in 2020. The popularity of outdoor activities has risen steadily since 2018. Here is a breakdown of the percentage of homeowners who made each type of home improvement each year from 2015 to 2020:
On the basis of type, the market is segmented into building materials, interiors and gardens, lighting, electrical materials, tools and hardware, paints, wallpapers and supplies, plumbing materials and equipment, and floor repair and replacement materials. Among them, the painting segment had the highest revenue share in 2021 and is expected to grow the fastest during the forecast period. Repainting is another popular renovation project during the pandemic that has boosted the residential architectural coatings market.
With restaurants and entertainment venues closed, many homeowners have retouched their decks and patios to make their homes a more attractive place. To create areas more suitable for cooking and entertaining, many homeowners install larger, higher-quality lighting. As a result, the residential outdoor lighting fixture market is growing at a healthy rate despite the commercial market being affected in 2020. Another bright spot was residential electric lawn and garden equipment, growing more than 5% in 2020. Because of the pandemic, home workers have more time to do lawn and garden maintenance themselves. The increase in DIY home improvement activity has also benefited the power tools market, which is expected to grow by 2.9% annually to reach $9.4 billion by 2024.
Money-saving home improvement tips
1. Set a budget and stick to it. One of the biggest mistakes homeowners make when renovating their properties is not setting a budget. Make sure you take the time to figure out how much you can afford and set a budget for your renovation project.
2. Make every effort to save on material costs. For example, you can buy recycled or reused building materials, which will help you keep costs down. You can also check Craigslist, eBay, or Freecycle to find free or cheap materials online. Also, when visiting these sites, you can take advantage of money-saving extensions such as CouponBirds and RetailMeNot to save money.
3. Donate old appliances to non-profits that pick them up for free. Many people choose to collect their old materials, but this service usually comes at a price. Waiver and call your local Habitat for Humanity. Not only will they collect anything salvageable for free, but you also get tax deductions for charitable donations.
4. Haul materials yourself. If you have a truck, you can save on shipping by picking it up yourself and delivering it safely home. You can also rent a truck for a day and it pays for itself if you use it for a few extra hauls a day.
5. Do as much of it yourself as possible. If you fancy yourself a handy guy or gal, you can do parts of the renovation yourself. This is the best, surefire way to save money on a renovation. Examples of home renovation projects that you may be able to do yourself include painting the interior, installing shelving and closets, installing wallpaper, painting tiles, installing kitchen backsplash, and demolition of walls.
1.Technavio, “DIY Home Improvement Retailing Market: 4.08% Y-O-Y Growth Rate in 2021 | By Product and Region: Global Opportunity Analysis and Industry Forecast, 2021-2025”. Archived from the original on June 28, 2022. Retrieved July 18, 2022.
2. Alex Shoemaker, “Which Home Improvement Projects Are Most Popular in 2021?”. Archived from the original on February 18, 2021. Retrieved July 18, 2022.
3. Jack Flynn, “HOME IMPROVEMENT INDUSTRY STATISTICS : MARKET SIZE, SHARE, GROWTH, AND TRENDS”. Archived from the original on April 30, 2022. Retrieved July 18, 2022.
4. Sarah Schmidt, “DIY Home Improvement Industry Booms During COVID-19”, Archived from the original on May 15, 2021. Retrieved July 18, 2022.