The Boom In US Home DIY During COVID-19
By Space Coast Daily // August 3, 2022
More and more people are working from home after COVID-19, whether in the United States or other countries. It is also because of working from home during the epidemic that people’s living, study, and work space have changed hugely.
On account of this change, U.S. homeowners are keen on do-it-yourself projects, renovations and home repairs that used to cost more than $400 billion a year on these projects. This data is astounding!
Demand For Home Improvement Rises During COVID-19
According to a survey by Nationwide in March, the majority of Americans were not able to pay their bills and finish decorating as they planned in 2021 due to material supply shortages and inflation during the pandemic.
About 57% of the homeowners said high material costs is the main reason, and 43% of the homeowners said the project could not be completed on time (the epidemic caused a shortage of manpower).
In the face of rising renovation costs, nearly 8 in 10 small construction or renovation companies said that materials will continue to rise in 2022, but despite this, only 5% of households planning to renovate will stop renovation because of these cost difficulties.
In addition, based on CouponBirds’ data, since the end of 2021, people’s search queries related to coupons for home improvement merchants are increasing and are expected to continue to surge in 2022.
The first quarter of 2022 increased 110% compared with the same period in 2021, and the second quarter is a 126% increase from the second quarter of 2021. Rising demand for home entertainment and improvement are key factors driving growth.
Most homeowners are focused on repairing abrasion (57%), making their home more comfortable (55%) or changing something outdated (49%). Specifically, 68% opted to improve their bathroom during the pandemic, 35% opted to improve their own patio, and 29% opted to renovate their basement.
With rising house prices deterring many people from buying new homes, 77% plan to continue investing and developing projects in existing homes, or have plans for future renovations.
People Tend To Homes DIY But Faces Challenges
Research from Technavio, the rapid catalysis of the epidemic in the home improvement industry has led to room for growth in the DIY retail home improvement market, with a year-on-year growth of 4.08% in 2021. The DIY home improvement retail market share is expected to increase by $154.76 billion from 2020 to 2025, at a CAGR of 5%. North America will contribute 49% of the market.
The DIY home improvement retail market is expected to accelerate over the next five years due to a greater emphasis on DIY home improvement projects for personalized interior design. Changing lifestyles have sparked interest in DIY interior design. In developing regions, the growing population of working women and their participation in the home improvement decision-making process drives sales of products required for such projects.
The use of DIY products reduces long-term work costs outsourced to expensive labor, which will be an important factor driving the demand for DIY home improvement products over the next five years.
The adoption of AR applications in home improvement projects is another factor supporting the growth of the do-it-yourself (DIY) home improvement retail market share. Technological advancements also extend to DIY home improvement projects. For example, Kingfisher upgraded its first mobile in-store technology in 2014.
The new web-enabled handheld device allows mobile checkout and provides service tools to locate products and check inventory functions. The company also launched a new mobile app that offers enhanced in-store maps and access to a live chat feature. The catalog uses AR to provide virtual previews of different DIY products, such as furniture in a room.
The app supports Android and iPhone operating system (iOS) platforms, enabling users to obtain accurate measurements of furniture. It visualizes multiple realistic 3D projects to create planned configurations for kitchens, bathrooms and living rooms.
The shift in consumer preference for DIFM (Do It For Me) from a DIY culture will be a major challenge to the do-it-yourself (DIY) home improvement retail market. Although the overall performance of the market has improved significantly, DIFM is expected to be a disruptor for market growth. Buyers of DIY products choose DIFM, especially in more mature markets, and hire a professional to do the work rather than do it themselves.
Some of the key drivers for the growing DIFM market are the aging consumers in Western Europe and North America along with rising employment levels and wage growth. As a result, DIY retailer sales are declining as DIFM professionals mostly opt for professional business-to-business (B2B) suppliers rather than consumer-facing DIY retail stores.
Homeowners Still Face Risks When They Renovate Their Homes
It looks like everything is going well for the home improvement market, but the recent inflation in the U.S. due to the pandemic has made it risky for many people to improve their homes. According to Hippo Insurance’s 2022 Homeowner Preparedness Report, overall, 60% of homeowners in a recent survey were Less willing to make large purchases for their own home or family.
Nearly 43% strongly (14.4%) or partially (28.4%) agree that inflation is causing them to delay planned home improvement or maintenance projects. (The poll used to generate the study was conducted April 29 through May 1 among 1,915 U.S. adults by Ipsos on behalf of Hippo.)
While people are keen to remodel their homes, it is vital that homeowners choose the right amount and type of insurance to effectively protect against inflationary shocks. The APCIA survey found that inflation, recent supply chain issues and the impact on skilled labor and construction materials following unprecedented natural disasters over the past two years.
The increase in demand has recently led to a significant increase in the cost of rebuilding homes and businesses. Prices for construction materials rose 44% from December 2019 to December 2021, but only 30% of insured homeowners purchased more insurance or increased coverage to cover rising construction costs.
Additionally, less than half (40%) of insured homeowners who completed renovations or remodels during the pandemic have updated their home insurance to address these changes.
But about two-thirds of homeowners may not have key additional insurance policies, such as annual inflation adjustments, extended improvement costs and building regulations coverage, that better protect them in these challenging market conditions.
During the COVID-19 pandemic, people find themselves spending much more time at home than usual, giving them the perfect opportunity to complete some home improvement projects, and many suddenly have the funds needed to do them. The home improvement market is booming, but it’s even more important to use your funds wisely these days.