The new construction and home improvement market remains strong, even in the face of sharp increases in property prices and supply chain challenges, market analysts report. Among the main statistics and forecasts released in recent weeks by government agencies, research companies and industry,
the professional associations concerned were:
Growth in owner-occupied housing improvement and repair spending is expected to remain “strong” through 2021 and into 2022, according to the Leading Indicator of Remodeling Activity, compiled by the Joint Center for Housing Studies of the United States. ‘Harvard University. The latest LIRA predicts a “healthy pace” of gains in annual home renovation and repair spending this year. “With a financial boost from federal stimulus payments and a strong appreciation in home prices, homeowners continue to invest in maintaining and improving their homes,” said Chris Herbert, General Manager of the Joint Center based in Cambridge, MA. Although the recent increase in do-it-yourself home improvement activity is slowing down, “homeowners are undertaking larger discretionary renovations that had been postponed during the pandemic,” observed Joint Center economist Abbe Will. “A shift to more professional projects is expected to bring homeowners’ annual renovation spending to $ 370 billion by the start of next year.”
IMPLEMENTATION OF HOUSING & SALES OF NEW HOUSES
Home production remains stable, builder confidence remains strong and homebuyer demand remains strong mainly due to low mortgage rates and limited inventory in the resale market. However, rising costs of building materials continue to hamper positive market dynamics, the National Association of Home Builders reported. According to the latest government figures available, overall housing starts were pegged at a seasonally adjusted annual rate of 1.74 million units, the fastest pace for single-family and multi-family construction since mid-2006. Comparing the first quarter of 2021 to the first quarter of 2020, single-family home starts rose 19.6%, while multi-family housing starts rose 30.8%, the NAHB reported. “(But) despite heavy buyer traffic, builders continue to face challenges,” said NAHB President Chuck Fowke. “The supply chain for residential construction is tight, especially when it comes to the cost and availability of lumber, appliances and other building materials,” Fowke added.
SALE OF CABINETS AND VANITIES
Major U.S. kitchen cabinet and vanity manufacturers continued to post sales gains in early 2021, according to latest in a series of business trend surveys conducted by the Kitchen Cabinet Manufacturers Association . The latest KCMA survey results, released in May, reflect a 17.9% increase in overall sales among participating cabinet makers for March, compared to the same month in 2020. Custom cabinet sales in March increased by 21.5%, while semi-personalized sales increased by 20.3%. and stock sales rose 29.6%, according to the Reston, Va.-based trade association. Sales for the first quarter of 2021 were up 11.6% from the same three-month period last year, the KCMA added.
A three-month increase saw domestic major home appliance shipments post strong increases in the first quarter of 2021, the Home Appliance Manufacturers Association reported. According to the AHAM of Washington, DC, first quarter home appliance shipments were up 27.4% from the first three months of 2020. Gains in the first quarter of 2021 were recorded in all key product categories , including cooking appliances (+ 25.2%). kitchen cleaning (+ 15.0%), food preservation (+ 41.6%) and domestic laundry (+ 28.9%), added the trade association.