The fallout from the coronavirus pandemic is expected to stifle home renovation expenditures until at least the second quarter of 2021, the Joint Center for Housing Studies (JCHS) estimates.
Prior to the pandemic, the JCHS predicted a 3.9% rebound for the remodeling market by the first quarter of 2021. However, “the latest data incorporating both actual and forecasted impacts of the economic shutdown point to spending declines this year with further worsening into 2021,” the study states.
Quarterly spending for home repairs and improvements is expected to turn negative by Q3 2020.
“Beyond the start of next year, remodeling activity that would typically result from expanding homebuilding, sales of existing homes, and home prices mean the greatest downturn could come later in 2021 with recovery depending on what occurs in housing markets over the remainder of this year,” stated Abbe Will, associate project director in the Remodeling Futures Program at the Center.
The full study can be found here.
