If homeowners are not participating in today's blazing hot housing market, they're likely looking for ways to improve their homes after spending so much time in them over the last year. Because of this, experts are expecting strong remodeling growth in 2021 and beyond.
The National Association for Homebuilders (NAHB) predicts 4% remodeling growth1 in 2021 and 2% in 2022. Also, annual expenditures for remodeling-related projects could reach $370 billion by early 2022, according to the Leading Indicator of Remodeling Activity2 released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
Here are some of the most significant remodeling trends for this year:
A Touch of Luxury
One of the tangible benefits for homeowners who are not moving is that the value of their home is likely to increase as bidding wars continue to drive up prices. That means they'll have more equity3, and the ability to take out home equity loans and lines that can pay for remodeling projects. In addition, they likely saved money instead of spending it on vacations in 2020.
That's why higher-end renovations4 such as outdoor sanctuaries with inground pools, decks and/or patios and fire pits; kitchens that allow for food prep and storage, and master bathroom updates5 that provide a relaxing atmosphere are popular. Kitchen updates, however, remain the priority - about 1 in 4 homeowners would transform that space if they had $10,000 to spend6. Approximately 51% of homeowners, according to the 2021 Houzz Kitchen Trends study7, plan to upgrade appliances during a renovation, with 70% preferring stainless steel. Appliances such as the WhirlpoolⓇ Counter-Depth 4-Door Refrigerator provides a sought-after stainless steel finish along with plenty of storage space for keeping groceries organized.
Desire for Customization
Don't have a home office? A fitness space? Extra room to house multiple generations?
The answer for many homeowners is to add on or transform their current home so they can have those customized, dedicated spaces8.
First-time homeowners might remodel out of necessity because they can only afford a smaller home. Older homeowners may opt to redo a basement to build a home office that accommodates a work from home schedule, or to create a living space for a parent who is going to stay with them, complete with a small kitchen and laundry area. Appliances such as the WhirlpoolⓇ 24-inch Wide Bottom-Freezer Refrigerator make it easy to transform compact areas such as in-law suites into highly functional spaces.
Increases Among Younger Generations
Although recent studies have shown the increasing trend toward baby boomers "aging in place" through remodeling their homes, there are plenty of millennials embracing remodeling as well. Whether they're updating their first home or retrofitting a move-up property, homeowners in their late 20s and 30s were responsible for much of the remodeling growth in 2020. In fact, millennials spent 60% more on home improvement compared with 2019, and completed 30% more projects, according to the HomeAdvisor State at Home report9.
This year, millennial households plan to spend about $10,000 on average for remodeling projects. Also, Gen Z homeowners, who are just entering the housing market, completed an average of 3.5 home remodeling projects last year, most of all generations. Some under-40 home buyers are pursuing cheap old houses10 they find on Instagram where the renovations are even more ambitious, and sharing their DIY adventures on TikTok11.
If remodelers want to really impress homeowners - especially younger ones - they can pursue eco-friendly upgrades12 by using green building techniques and get National Green Building Standard Green Remodel Certifications13.