Boom Continues in Home Improvement and Kitchen Remodeling

Kitchen remodel

Throughout the year, experts take the pulse of the home-improvement industry. Their latest research shows that spending is up and the mood remains high. Current challenges facing the industry, however, will likely continue into next year and will decelerate the rate of growth. Here’s a roundup of current forecasts and indices from top industry authorities.

Leading Indicator of Remodeling Activity

Home-improvement spending is expected to grow throughout 2022 and into early next year, but at a slower pace, according to the latest Leading Indicator of Remodeling Activity (LIRA) released in April by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. The LIRA projects year-over-year increases in residential remodeling and repair spending will reach 19.7 percent in the third quarter of this year before decelerating to 15.1 percent in the first quarter of 2023.

Remodeling Market Index

The remodeling market remains stable according to the latest Remodeling Market Index (RMI) released by the National Association of Home Builders/Westlake Royal. For the first quarter of 2022, the index was 86, unchanged from the first quarter of 2021. It indicates a broad-based positive sentiment among remodelers, who were asked to rate various aspects of the residential home-improvement market.

U.S. Remodeler Index

The U.S. Remodeler Index, computed by the John Burns Real Estate Consulting Firm (JBREC) and Qualified Remodeler Magazine, also measures business sentiment of residential remodelers and home-improvement professionals. The latest reading was 68.4, which is considered positive. Despite inflation and rising prices, 65 percent of remodelers reported that their average project size is still growing.

NKBA’s Market Outlook

The NKBA’s Market Outlook report predicts that total residential kitchen and bath spending will reach a record $199 billion in 2022. Kitchen expenditures will account for $95.4 billion of that total, up 20.5 percent over the previous year. The study, conducted by JBREC, found that 85 percent of remodels will include professional involvement. It also cites product and labor shortages, timeline delays, and rising material costs as continuing concerns.

Overall, the future looks bright for residential remodeling, including kitchen renovations, even as we navigate some uncharted industry challenges. ADU’s experts can help you meet the high demand.