Like nearly every aspect of the U.S. economy, home improvement product purchases have had a significant downturn at the end of the first quarter and throughout the second quarter, according to research by the Home Improvement Research Institute (HIRI) and IHS Markit. HIRI and IHS Markit said the home improvement industry has not been hit as hard as other industries in the economy, though. Housing prices and purchase activity have also not been significantly affected.
Despite sales dropping in recent months, demand remains high in the home improvement segment, with inventory being the choking point. While the recovery is not as "V-shaped" as originally expected, spending and employment are expected to steadily rise in the coming months and years, according to HIRI and IHS Markit.
An infographic produced by HIRI and IHS Markit indicates home improvement product spending is projected to be $365.39 billion in 2020. Approximately 70% of the projected home improvement product spending is expected to come from the professional contractor category and around 30% of the spending is projected to come from consumers. The $365.39 billion in spending is around a 10% decrease from spending during 2019 on home improvement products, according to HIRI and IHS Markit. Despite lower spending in 2020, HIRI and IHS Markit project home improvement product spending will recover and grow by 4% in 2021 and over 6% in 2022. The free infographic produced by HIRI and IHS Markit is available for download from the HIRI website.
