The Home Improvement Research Institute Predicts Continued Growth for Home Improvement Products Market, with Ease in Consumer Spending Through 2026

The Home Improvement Research Institute Predicts Continued Growth for Home Improvement Products Market, with Ease in Consumer Spending Through 2026

by Home Improvement

Data from the recently released market update indicates a return to pre-pandemic market levels as inflation spikes and households complete home improvement projects

Home Improvement Research Institute (HIRI) (PRNewsfoto/Home Improvement Research Institute (HIRI))

Home Improvement Research Institute (HIRI) (PRNewsfoto/Home Improvement Research Institute (HIRI))

INDIANAPOLIS, April 28, 2022 /PRNewswire/ — The Home Improvement Research Institute, the nation’s leading resource for market research concerning the home and building products industry, has forecasted consumer spending on home improvement products will steady after two years of extreme demand following the COVID-19 pandemic. Rising inflation, reduced real household income and completed projects led HIRI to forecast that overall consumer market sales will increase by 2.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in 2023 to $382.5 billion. This research was conducted in partnership with IHS Markit and released to HIRI members at the end of Q1 in the biannual Home Improvement Products Market Forecast.

Looking at growth over the last 10 years, the 2.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} increase reflects a healthy market. In 2020 and 2021 alone, consumer spending on home improvement soared to 15{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and 13.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, respectively, as homeowners invested time and money into their spaces that served as homes, offices, schools, gyms and more.

“The extreme increase in demand for home improvement products that we witnessed because of the pandemic was bound to calm sooner or later,” said HIRI Research Director Matthew Craig. “While consumer spending is easing slightly on home improvement products, it is important to emphasize that any future boost is compounded on previous unprecedented growth. The market is still performing very well.”

HIRI cites differing economic circumstances and homeowner needs as reasons for the shift in consumer demand. This year, households are seeing real income decline as inflation climbs and stimulus payments recede. The Forecast predicts U.S. real disposable income to decline by 3.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in 2022 after climbing 2.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in 2021.

For those left unaffected, disposable funds are expected to be directed toward hobbies or other major purchases, as many report pandemic-era projects being brought to completion. However, contractor-led projects are expected to see an uptick as homeowners become comfortable allowing professional help into their living spaces again.

In the short term, the Forecast predicts the total building products market to grow by 4.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in 2022, with the consumer market growing by 2.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and the professional market growing by 7.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. Between 2024 and 2026, the consumer market is expected to average about 3.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} growth, and the professional market to average around 4.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} growth for the same period. This projection highlights a significant rise in contractor activity as well as an overall continued interest in home improvement in the coming years.

The Forecast further breaks down this growth by segmented merchandise line.

Top-growing merchandise lines for consumers

Compound annual growth rate for the consumer market between 2022 and 2026:

  • Lawn and garden equipment and supplies: 6.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Dimensional lumber and boards: 5.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Doors and molding: 5.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Electrical supplies: 4.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Nursery stock and soil treatments: 4.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Plywood and related products: 4.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Siding and exterior trim: 4.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Top-growing merchandise lines for professionals

Compound annual growth rate for the professional market between 2022 and 2026:

  • Dimensional lumber and boards: 7.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Doors and molding: 7.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Plywood and related products: 7.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Siding and exterior trim: 6.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Electrical supplies: 6.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Lawn and garden equipment and supplies: 6.0{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

  • Paint sundries and other supplies: 5.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Since 1992, the Home Improvement Products Market Forecast has provided the home improvement industry’s only product-focused size of market study with five-year forecasts for the consumer and professional markets. Product category–level detail is provided for the consumer market and, since 2018, for the professional market. Geographic detail is also provided for the nine census divisions with annual estimates at the state level. The Forecast is released in the spring (Q2) and fall (Q3) exclusively to HIRI members.

HIRI members receive unlimited access to Home Improvement Products Market Forecasts and $1 million worth of additional industry research. For industry professionals, publishers, marketing executives and more, HIRI is the top source of data to help guide business decisions.

Learn more and join as a member at hiri.org.

About the Home Improvement Research Institute
HIRI is the leading non-profit business organization for more than 100 of the biggest names in the home improvement industry. Our goal has always been to provide companies of all sizes with actionable resources ranging from raw data to digestible executive summaries to shape business decisions. Join as a member for unlimited access to $1 million worth of industry research. For more information, visit www.hiri.org.

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The Home Improvement Research Institute Predicts Overall Home Improvement Product Sales to Continue Growth into 2025, with Uptick in Professional Market Growth

The Home Improvement Research Institute Predicts Overall Home Improvement Product Sales to Continue Growth into 2025, with Uptick in Professional Market Growth

by Home Improvement

INDIANAPOLIS, Oct. 11, 2021 /PRNewswire/ — The Property Advancement Investigation Institute, the nation’s main resource for current market exploration relating to the dwelling and setting up solutions marketplace, has forecasted the complete U.S. making products and solutions market to continue on developing on exponential progress found in 2020 and 2021. The full current market will mature by an supplemental 2.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} from 2023 by way of 2025, with the customer current market escalating by 2.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and the skilled marketplace developing by 4.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. This exploration was carried out in partnership with IHS Markit and released to HIRI members at the conclusion of Q3 in the biannual Residence Enhancement Items Market Forecast. 

“The household improvement market had explosive advancement throughout the Coronavirus pandemic due principally to Do it yourself jobs, but that may possibly now be pushed by professionals,” mentioned HIRI Exploration Director Matthew Craig. “We are happy to now provide the dwelling and making field some perception into what they can anticipate as we carry on to navigate a put up-Pandemic earth.”

In the quick time period, the Forecast predicts the complete making solutions industry to expand by 13.{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in 2021, with the customer marketplace growing by 10.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and the expert market growing by 18.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. In 2022, the full constructing merchandise market is forecasted to increase by an extra 2.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, with the shopper current market growing by .2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and the qualified sector developing by 7.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}.

These conclusions show a curtailment of Do it yourself expansion as an total share of home advancement product sales in 2022, as a lot of property owners completed prepared initiatives during this year and the past. Having said that, progress will carry on further in the skilled goods current market as COVID-19 limits relieve and assignments at the time on hold resume. This usually means demand from customers for specified merchandise will carry on to raise in spots the place contractor-led jobs are substantial.

“The robust household enhancement outlook presented by pandemic conduct has been supplied new daily life by this year’s improved employment gains, greater access to vaccinations and supplemental stimulus measures. All have boosted shopper confidence and the housing sector in individual,” reported IHS Markit Managing Director Scott Hazelton. “Though the boom can not final for good, a continuing potent economic climate implies expending by contractors will really make improvements to year-in excess of-12 months as households feel more snug with contractors in their home.”

HIRI’s House Improvement Solutions Current market Forecast additional breaks down this expansion by segmented products line and site.

Top developing products traces for gurus
Compound once-a-year growth charge for the skilled market place among 2021-2025:

  • Siding and exterior trim: 11{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Gypsum & specialty boards: 9.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Dimensional lumber & boards: 8.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Roofing & provides: 8.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Doors & molding: 8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Kitchen & tub cupboards: 7.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Significant house appliances: 7.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Swiftest increasing experienced marketplaces
Compound annual advancement charge in residence improvement shelling out by state in between 2021-2025:

  • Oklahoma: 8.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • California: 8.7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • New Mexico: 8.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Nevada: 8.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Texas: 8.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Massachusetts: 8.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Louisiana: 8.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Kentucky: 8.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • South Carolina: 8.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Georgia: 8.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Typical yearly progress rates in dwelling advancement paying out by area concerning 2022-2025:

  • West South Central: 6.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Pacific: 6.{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • New England: 5.5 {d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • South Atlantic: 5.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Mountain: 4.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • East North Central: 4.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • West North Central: 4.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Center Atlantic: 4.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • East South Central: 4.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Considering the fact that 1992, the Home Improvement Merchandise Industry Forecast has furnished the dwelling improvement industry’s only merchandise-centered dimensions of industry review with five–year forecasts for the customer and expert markets. Product classification stage element is presented for the consumer industry and, because 2018, for the specialist market place. Geographic detail is also offered for the nine Census divisions with yearly estimates to the point out stage. The Residence Enhancement Goods Industry Forecast is launched biannually, in the spring (Q2) and drop (Q3) solely to HIRI members.

HIRI customers receive endless obtain to Home Advancement Products Market place Forecasts and $1 million value of further business investigate. For industry industry experts, publishers, promoting executives and far more, HIRI is the top rated resource of information to aid information small business selections.

Discover extra and join as a member at www.hiri.org.

About the Dwelling Improvement Study Institute

HIRI is the top non-financial gain organization group for extra than 100 of the most significant names in the property enhancement marketplace. Our target has always been to offer corporations of all dimensions with actionable resources ranging from raw info to digestible government summaries to form business conclusions. Sign up for as a member for unlimited accessibility to $1 million value of marketplace investigation. For extra information and facts, check out www.hiri.org.

Resource Household Improvement Exploration Institute (HIRI)

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The Home Improvement Research Institute Predicts Overall Home Improvement Product Sales to Continue Growth into 2025, with Uptick in Professional Market Growth | State

The Home Improvement Research Institute Predicts Overall Home Improvement Product Sales to Continue Growth into 2025, with Uptick in Professional Market Growth | State

by Home Improvement

INDIANAPOLIS, Oct. 11, 2021 /PRNewswire/ — The Residence Improvement Analysis Institute, the nation’s main resource for sector exploration about the house and developing solutions field, has forecasted the complete U.S. developing merchandise current market to continue setting up on exponential progress found in 2020 and 2021. The full market will grow by an further 2.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} from 2023 via 2025, with the shopper sector developing by 2.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and the professional market expanding by 4.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. This research was performed in partnership with IHS Markit and introduced to HIRI users at the conclusion of Q3 in the biannual Residence Advancement Products and solutions Industry Forecast. 

“The residence advancement market experienced explosive progress during the Coronavirus pandemic due largely to Do it yourself initiatives, but that may possibly now be driven by pros,” stated HIRI Research Director Matthew Craig. “We are glad to now give the dwelling and creating sector some perception into what they can expect as we keep on to navigate a put up-Pandemic world.”

In the quick term, the Forecast predicts the complete constructing merchandise industry to increase by 13.{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} in 2021, with the shopper sector developing by 10.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and the professional sector rising by 18.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}. In 2022, the total making products market is forecasted to grow by an supplemental 2.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}, with the client sector developing by .2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9} and the specialist sector growing by 7.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}.

These conclusions show a curtailment of Do-it-yourself progress as an overall share of property advancement solution revenue in 2022, as lots of homeowners accomplished planned assignments all over this 12 months and the past. Nevertheless, progress will continue even further in the qualified solutions marketplace as COVID-19 restrictions ease and tasks once on keep resume. This implies demand from customers for sure merchandise will go on to raise in regions exactly where contractor-led initiatives are large.

“The powerful dwelling enhancement outlook provided by pandemic behavior has been presented new daily life by this year’s improved work gains, improved entry to vaccinations and supplemental stimulus actions. All have boosted client assurance and the housing marketplace in particular,” mentioned IHS Markit Managing Director Scott Hazelton. “When the growth cannot previous for good, a continuing solid overall economy implies shelling out by contractors will in fact improve calendar year-above-calendar year as homes sense much more cozy with contractors in their home.”

HIRI’s House Enhancement Merchandise Current market Forecast further breaks down this development by segmented products line and place.

Best escalating items traces for industry experts

Compound annual progress amount for the expert market place in between 2021-2025:

  • Siding and exterior trim: 11{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Gypsum & specialty boards: 9.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Dimensional lumber & boards: 8.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Roofing & provides: 8.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Doorways & molding: 8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Kitchen area & bath cabinets: 7.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Main residence appliances: 7.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Fastest growing specialist marketplaces

Compound yearly expansion fee in property advancement shelling out by point out among 2021-2025:

  • Oklahoma: 8.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • California: 8.7{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • New Mexico: 8.6{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Nevada: 8.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Texas: 8.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Massachusetts: 8.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Louisiana: 8.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Kentucky: 8.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • South Carolina: 8.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Ga: 8.3{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Regular yearly expansion charges in dwelling advancement expending by region amongst 2022-2025:

  • West South Central: 6.2{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Pacific: 6.{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • New England: 5.5 {d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • South Atlantic: 5.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Mountain: 4.9{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • East North Central: 4.8{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • West North Central: 4.5{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • Middle Atlantic: 4.4{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}
  • East South Central: 4.1{d4d1dfc03659490934346f23c59135b993ced5bc8cc26281e129c43fe68630c9}

Considering that 1992, the Dwelling Enhancement Items Marketplace Forecast has offered the household enhancement industry’s only products-centered size of market analyze with five–year forecasts for the purchaser and skilled markets. Item classification degree detail is delivered for the purchaser marketplace and, considering that 2018, for the skilled current market. Geographic detail is also delivered for the nine Census divisions with once-a-year estimates to the point out stage. The Dwelling Enhancement Products and solutions Sector Forecast is introduced biannually, in the spring (Q2) and slide (Q3) solely to HIRI users.

HIRI users obtain unlimited entry to Property Improvement Solutions Marketplace Forecasts and $1 million really worth of more field analysis. For business pros, publishers, marketing and advertising executives and a lot more, HIRI is the leading resource of information to assist information business choices.

About the Household Enhancement Research Institute

HIRI is the leading non-revenue organization corporation for additional than 100 of the biggest names in the house improvement marketplace. Our aim has constantly been to deliver companies of all sizes with actionable methods ranging from raw data to digestible govt summaries to condition business decisions. Be part of as a member for limitless accessibility to $1 million well worth of industry investigate. For far more information and facts, check out www.hiri.org.

Supply House Enhancement Research Institute (HIRI)