The coronavirus pandemic is having a significant impact on homeowners' decision to remodel, according to a recent survey conducted by the National Association of Home Builders (NAHB). Over 90% of remodeler respondents indicated a slowdown in the rate at which inquiries were coming in and in the general willingness of homeowners to remodel, according to the NAHB's Eye on Housing blog.
A question on the NAHB's first quarter Remodeling Market Index listed eight possible impacts of the coronavirus and asked the professional remodelers in the panel if each has so far had a major, minor, or no adverse effect on their businesses. Ninety-six percent of remodelers said the virus was hurting the rate at which inquiries are coming in and 93% said the virus was hurting the general willingness of homeowners to remodel at this time. A full 70% characterized the negative impact on inquiries as major rather than minor.
Other adverse impacts on the list have also become widespread. Over 80% of remodelers said the virus was having a noticeable, adverse impact on homeowners’ concerns about interacting with remodeling crews (86%), supply of n95 respirator face masks (84%) and cancellations or delays of existing projects (also 84%). Although somewhat less widespread, willingness of workers and subs to report to a remodeling site, supply of building products and materials, and amount homeowners are willing to pay for remodeling work were still cited as significant negative effects of the pandemic by over half of the remodelers.
In some respects, the impact of the coronavirus on the remodeling market mirrors what we’re seeing in the market for new homes. In both cases, the pandemic is having a number of significant negative impacts, but the strongest ones are the negative impacts on the behavior of potential customers.Read More