Despite Devastating Effects on Broader Economy , Pandemic Has Been a Boon for US Home Improvement
While the US economy shrank by 3.5 percent in 2020 , spending on home improvements and repairs grew more than 3 percent , to nearly $ 420 billion , as households modified living spaces for work , school , and leisure in response to the COVID-19 pandemic , according to Improving America ' s Housing 2021 , a new report released today by the Harvard Joint Center for Housing Studies . Although many professional remodeling projects came to a halt when the pandemic hit , DIY renovations surged . The sudden flexibility of remote work also increased demand for larger homes and yards in lower-cost and less dense areas of the country .
The unexpected strength of the home remodeling market made 2020 the tenth consecutive year of expansion for the industry , but the pandemic disrupted several long-term trends . “ From 2010 to 2019 , homeowners largely relied on professional contractors , and remodeling activity was heavily concentrated in coastal metros ,” said Kermit Baker , Director of the Remodeling Futures Program at the Joint Center for Housing Studies . “ But in 2020 , amid concerns about having contractors in the home , DIY projects gained new popularity , and remodeling activity shifted to lower-cost metros where larger shares of younger households — traditionally the most active do-it-yourselfers — could afford to own homes .” [ Interactive Chart ] In late March of last year , 60 percent of respondents to one homeowner survey had begun at least one DIY maintenance or improvement project in the previous two to three weeks ; by early May , the share had jumped to nearly 80 percent . Additionally , during the pandemic , many urban renters purchased homes — a transition that often begins a new cycle of improvement projects — in outlying communities in search of safer living conditions , more space , and lower housing costs .
For many homeowners with low incomes , however , keeping up with mortgage payments — let alone home maintenance — was especially challenging last year . And while 68 percent of the lowestincome owners spent less than $ 500 on improvements and repairs in 2019 , as a group , they are an important segment of the remodeling market , contributing around 10 percent of national spending each year . The ability of these owners to maintain their typically older , more affordable homes is critical not just for their safety and comfort , but for the preservation of the country ’ s aging
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