During April, the first full month with coronavirus-enforced shutdowns and shelter-in-place orders, the impact on the U.S. housing market was significant and widespread, according to the most recent Housing Health Report from BuildFax. The remodel volume in April, a subset of maintenance that includes renovations, additions, and alterations, decreased 33.83% on a month-over-month basis. Existing house maintenance volume decreased 29.09% on a year-over-year basis, according to BuildFax.
“By and large, property transactions have slowed substantially, which subsequently affects the pace of maintenance and remodeling,” BuildFax managing director Jonathan Kanarek said. “On the bright side, we anticipate maintenance and remodeling to rebound as the number of home sales starts increasing later this year.”
The Housing Health Report also found a 7.37% month-to-month decrease in single-family authorizations in April and existing housing expenditures decreased 29.71% year-over-year. The declines were likely caused, in part, by the combination of growing unemployment and decreasing home sales. While maintenance and remodeling is typically guided by localized or regional trends, existing housing spend is declining across almost all major metros, according to BuildFax.
The BuildFax Housing Health Report is conducted by examining properties in the U.S. between the years 2013 and 2020, with data seasonally adjusted to reflect numbers representative of the entire country.
