According to the Census Bureau, construction spending remained the same for July and August, standing at a seasonally adjusted rate of about $1.584 trillion. The rate is about 8.9 percent higher than the same period in 2020, pushed by increased private construction spending. Private spending has increased by 0.4 percent for six months month-on-month to stand at $786.589 billion, out of the $1.584 trillion stated above. The bulk of this spending went to home remodeling.
Home remodeling numbers are up, having seen a rise since the beginning of the pandemic. Residential property owners sought to remodel everything from outdoor spaces to creating new home offices. Besides, there has been an increase in new flooring, paint, and window projects.
HomeAdvisor estimates the spending on home services enjoyed a $4,000 increase year-over-year to stand at $13,138 in 2020. However, this trend does not seem to slow down anytime soon. Many housing experts believe that the increase in projects came about from the need to have additional space to work and that people spent lots of time at home.
New Trends in Home Remodeling
Most people see the home as a safe haven, even as many countries loosen up their COVID 19 restrictions. Therefore, they created amazing spaces outdoors where they could relax and have fun. This increased the demand for landscaping, decking, and patios for outdoor spaces. Over 41% of potential home renovation customers transformed their homes to suit their changing lifestyle needs. This contrasts with the main reasons for home renovation in 2019 and earlier, which were to correct a defect, repair, and replace it.
Most customers are now thinking of energy consumption in their needs assessment. They are looking for products that help reduce their energy consumption and carbon footprint. This shift has seen them look for energy-efficient fittings, lighting, and furniture. Despite the changing needs, customers are very sensitive to overall affordability and project cost.