Better than expected

The US home improvement product market is exceeding its forecast. That is the main message of the updated market report published in April by the Home Improvement Research Institute (HIRI) in cooperation with IHS Markit. The current report is based on the most recent IHS economics forecast of the US economy and looks at what to expect in the market until 2025.
Due to rapidly falling Covid-19 infection rates and states' widespread relaxation of containment measures, as well as an accelerated vaccination campaign, an update to this macroeconomic forecast has been published. Some of the upward movement reflects major elements of a USD 1.9 trillion stimulus package passed by Congress, the market researchers report.
These improvements "have boosted consumer confidence and the housing market in particular," said IHS Markit global construction director Scott Hazelton. "Home improvement spending growth will moderate from 13.8 per cent in 2020 to 9.9 per cent in 2021, but spending by contractors will actually improve year over year as households feel more comfortable with contractors in their home."
Sales of home improvement products in 2020 were higher than estimated in the researchers' August outlook. In 2020, the total home improvement market grew by 13.8 per cent to USD 460 bn which is 5.1 per cent higher than previously estimated.

One of the reasons for the growing home improvement sales is the development on the housing market which gained speed in the second half of 2020, according to the report. Overall, existing-home sales increased 6.5 per cent last year.
"We expect growth in home improvement product sales to ease in 2022, as many homeowners completed projects in 2020 or will do so this year," the report states. Scott Hazelton estimates that the market will grow another 5.7 per cent in 2022.
The Fransworth Group, another market research company partnering with HIRI, gave a similarly optimistic outlook for the coming months when holding an online seminar in early April.
Grant Fransworth, president of the group is convinced that, because of Covid, consumers will continue to invest increasingly in their homes, "their sanctuary and safe space," as he said. In his recent survey, a growing section of consumers declared having…