Remodeling Demand Remained Strong in 2021 Despite Supply Chain ProblemsFebruary 10th, 2022 by Editor
Experts at a press conference hosted by the National Association of Home Builders (NAHB) Remodelers at the NAHB International Builders’ Show (IBS) in Orlando said the remodeling industry saw strong demand throughout 2021 despite supply chain problems and rising costs.
They report that the NAHB/Royal Building Products Remodeling Market Index (RMI) showed continued year-over-year improvement in remodelers’ sentiment, with index levels at well above break-even point of 50.
“Higher home equity and historically low interest rates provided resources for homeowners to improve their existing homes, helping to support the high demand for remodeling projects,” said NAHB assistant vice president for surveys and housing policy research Paul Emrath.
Lumber prices continued to move higher–up 218% in the past five months to $1,238 per thousand board feet.
Another issue impacting the remodeling industry is the lack of skilled labor, which leads to delays in completing remodeling projects. There were 345,000 open construction positions in November 2021, Emrath noted.
“Despite delays and higher costs due to supply chain problems, demand for remodeling remains high,” said Emrath. “Looking ahead, we expect to see continued growth in the remodeling market in 2022 and 2023, although not as strong as 2021.”
Matthew “Matt” Emmons, CGR, president of Emmons Construction LLC in Jenks, Okla., said he has seen “a steady flow of work in all aspects of our industry,” and that “every sub, vendor and supplier is as busy as they’ve ever been. I think the concern moving forward is timing for completion and keeping quality at a premium during all the chaos of supply chain issues and labor shortages.”