Stay-at-home orders first generated a jump in DIY projects and are now resulting in a surge in new home purchases and remodeling projects involving contractors.
The Opportunity for New Home Design
We surveyed 5,000 recent home buyers last week, and 69% of them cited COVID-19 as the reason they purchased, compared to only 31% who said they were planning to purchase before the pandemic. The COVID-19-related reasons included:
- lowest mortgage rates ever
- dislike of their current home layout
- desire for a larger home
Shifting consumer preferences can produce opportunities in smaller homes with smart use of space as well as present opportunities for builders who can capitalize on a growing preference for larger homes. We have great examples of both in our DesignLens™ database.
The Opportunity for Remodeling
Our biweekly remodeling survey showed rising activity five times in a row now. We expect a surge in contractor remodeling that will shift from exterior work to interior work, particularly kitchen and bath remodels and specifically new cabinets. The remodel projects are likely to be less expensive than pre-COVID-19, too, and completed incrementally, as consumers still have trepidation about the future. Companies who are packaging remodels that can be done in phases will win market share..
We also believe the companies who continue to provide inspirational remodeling ideas and easy-to-navigate (one-click ordering) websites will be the winners.
In summary, there is a housing rally driven by COVID-19 that is providing opportunities for builders and remodelers, such as:
- smaller kitchen and bath projects
- remodeling projects inspired by great ideas on your website
- new floor plans that provide more privacy in the home