CHICAGO--(BUSINESS WIRE)--Confidence among residential remodelers expanded in the third quarter, according to the latest U.S. Remodeler Index. It is the fourth consecutive quarterly boost in sentiment, which has been soaring since the summer of 2020.
The U.S. Remodeler Index is a diffusion created by John Burns Real Estate Consulting and Qualified Remodeler magazine. For the most recent quarter, the index scored a 71.4 reading based on a scale where any result over 50 is seen as a positive indicator for market health.
“Based on this Q3 USRI read, the message is clear, residential remodeling, especially ‘big’ remodels, are gearing up for a strong 2022,” said Todd Tomalak, a principal with John Burns. “Projects scopes are getting larger, and we are simultaneously seeing acceleration in project volume. In our view, these strong numbers show we should expect double-digit growth in 2022. They support our thinking that ‘big-project’ remodel spending will grow by over 40 percent cumulatively from start 2021 to 2024.”
Four Clear Takeaways
Analysis of third quarter data offers four clear takeaways, the John Burns team said in a report.
Bigger Projects. Consumers are still opting for large-scale home renovations. Over 60 percent of remodelers say average project size was larger in Q3 vs. Q2, noting most consumers are remodeling multiple areas of their house in the same project.
Timelines are slipping. Over 70 percent of remodelers across all industry segments say projects are taking longer to complete vs. the same prior-year period, and 47 percent of remodelers indicate almost half of their current projects are behind schedule.
Product availability. Remodelers and consumers are becoming more brand agnostic on products like appliances and cabinetry, as sheer availability begins to win out over brand preference.
A great 2021. Remodelers expect average revenue growth of 10 percent for full-year 2021. Although some consumers are deferring their projects into 2022, healthy project backlogs fuel remodeler confidence in full-year 2021 revenue growth of 10 percent, on average.
Qualified Remodeler media reaches 83,000-plus remodelers in print and thousands more online. It is owned by SOLA Group Inc., which also owns Kitchen & Bath Design News and Residential Design media brands.
John Burns Real Estate Consulting, LLC provides independent research and consulting services related to the U.S. housing industry.
Building product companies wishing to receive a copy of the latest report can email Heidi Riedl at firstname.lastname@example.org.