US Remodeler Index Rises, Strengthens Bullish Outlook
CHICAGO–(COMMERCIAL THREAD) – Confidence among home renovators strengthened in the third quarter, according to the latest US Renovator Index. This is the fourth consecutive quarterly rise in sentiment, which has skyrocketed since the summer of 2020.
The US Remodeler Index is a release created by John Burns Real Estate Consulting and Qualified renovator magazine. For the most recent quarter, the index got a reading of 71.4 based on a scale where anything above 50 is considered a positive indicator of the health of the market.
“Based on this USRI Q3 reading, the message is clear, residential remodeling, especially ‘big’ remodels, is gearing up for a strong 2022,” said Todd Tomalak, director of John Burns. “The scope of projects is widening and we are simultaneously witnessing an acceleration in the volume of projects. In our view, these strong numbers show that we should expect double-digit growth in 2022. They support our thinking that “major projects” renovation spending will increase by over 40% cumulatively between the start of 2021. and 2024. ”
Four clear take-out dishes
Analysis of the third-quarter data offers four takeaways, John Burns’ team said in a report.
Bigger projects. Consumers are still opting for large-scale home renovations. Over 60% of renovators say the average project size was larger in the third quarter than in the second quarter, noting that most consumers are renovating multiple areas of their home in the same project.
Deadlines are slipping. Over 70% of renovators across all segments of the industry report that projects take longer to complete compared to the same time a year ago, and 47% of renovators report that almost half of their ongoing projects are behind schedule.
The availability of products. Renovators and consumers are increasingly brand agnostic on products like appliances and cabinets as sheer availability begins to trump brand preference.
A great 2021. Renovators expect average revenue growth of 10% for the full year of 2021. Although some consumers postpone their projects to 2022, healthy project backlogs are fueling renovators’ confidence in average revenue growth. 10% for the whole of 2021.
Qualified renovator media reaches over 83,000 renovators in print and thousands more online. It is owned by SOLA Group Inc., which also owns Kitchen and bathroom design news and Residential design media brands.
John Burns Real Estate Consulting, LLC provides independent research and advisory services related to the US housing industry.
Construction products companies wishing to receive a copy of the latest report can email Heidi Riedl at [email protected]