Home Improvement Market Trends

Growth Drivers

• Rising number of homeowners making renovation investments - The rise in house improvement and remodeling expenditures among homeowners, driven by changing needs and desires for unique living environments. This trend has been further accelerated by the pandemic, as more people have stayed at home and improved their living spaces.
  
  Furthermore, the home improvement market demand has been greatly increased by the expanding do-it-yourself (DIY) culture, which is made possible by a variety of home renovation items and simple access to internet tutorials. Approximately 3 out of 4 homeowners do it themselves. Approximately 50% of do-it-yourselfers work on exterior home improvement projects.
   
• Rising mortgage and interest rates fueling the need for home renovation - With the real estate industry growing at an exponential rate, housing has become a major global concern. Rising global mortgage and interest rates are a direct consequence of rising inflation, making property ownership even more challenging.
  
  Consumers are choosing low-cost home repair projects that update their homes with the newest trends in order to avoid spending more on new homes and to avoid paying high borrowing rates. According to data from the home improvement industry, customers are expected to spend more money than they have in the past on house improvements in the upcoming years. In 2018, data on residential housing mortgage loans was recorded at 25,750.000 RMB bn.
   
• Startups taking advantage of new funding to grow their home renovation companies - Renovation and home remodeling have gained popularity worldwide as people's standards of living rise and they have more money to spend on these upgrades. A thriving market for home renovation has drawn numerous new businesses looking to provide cutting-edge products and services for customers.
  
  Belgian bank insurer KBC spearheaded the investment in Setle, a start-up company that recently disclosed raising about USD 15 million. Real estate agents and potential buyers can almost immediately obtain a reasonable estimate for sustainable improvements from the start-up.

Challenges

• Expensive prices for high-quality materials - The high cost of labor, high-quality materials, and cutting-edge technologies is one of the primary market barriers that prevents some consumers from affording home remodeling projects. Consumer spending on remodeling and renovations is also influenced by real estate industry swings and economic concerns, which can be a limitation during economic downturns. Regulatory obstacles, such zoning laws and building rules, can make projects more complex and expensive, which hinders the expansion of the home improvement market.
• Changing industry trends quickly could impede market expansion - The quickly evolving trends in the home renovation business are predicted to pose a challenge to the growth of the global home improvement market. Home improvement service providers need to make sure that their workers are trained in the newest home improvement requirements when new styles, patterns, and technologies are brought to the market. The rate of market growth may be further impeded by limited access to skilled professions.