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Modest expectations for remodeling growth in 2021

While remodeling spending is expected to rise in 2021, growth will not be as strong compared to the prior year.

Annual gains in spending for improvements and repairs to owneroccupied homes are expected to be modestly higher in 2021 compared to last year, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies (JCHS) of Harvard University.

The LIRA projects an uptick in yearover-year growth of home renovation and repair expenditure from 3.5% at the close of 2020 to 3.8% by year-end 2021.

“The remodeling market continues to benefit from a strong housing market—including accelerating growth in homebuilding, sales, and home equity,” says Chris Herbert, managing director of the JCHS. “In addition to routine replacement and repair projects, homeowners are likely to pursue more and larger discretionary home improvements this year as the broader economy recovers.”

But new data has prompted the JCHS to increase its estimated size of the overall remodeling market.

“With the release of new benchmark data from the American Housing Survey, we’ve raised our projection for market size in 2021 by about $4 billion, or 1%, to $352 billion,” says Abbe Will, associate project director in the Remodeling Futures Program. “Spending in 2018 and 2019 was slightly more robust than previously estimated, growing 12.8% over these two years compared to 11.5% as estimated.”

Remodeling spending could increase by 3.8% in 2021, according to the Joint Center for Housing Studies of Harvard University.

News map: Openings, closings & acquisitions

Illustration of retailers and dealers in various stages of coming and going. For more retail news, visit HBSDealer.com.

wisconsin

Madison

Isthmus True Value Members of a groove rock group Full Vinyl Treatment with hardware retailing experience opened a 3,000-sq.-ft. hardware store in a former bank building in the Wisconsin capital city. The owners intend to keep the drive-thru banking window operating as a drive-thru hardware pickup feature.

OPENING CLOSING ACQUISITION new york

Niskauyuna

Hatchet Hardware Hatchet Hardware opened its fifth hardware store in upstate New York, ocated roughly 20 miles north of Albany. “We’re excited to get to know the community and start working with creators from around Niskayuna to bring in new local goods,” said Taylor Clement, buyer and merchandiser. A member of the Ace Hardware co-op, Hatchet Hardware opened its first location in 2014.

wyoming Afton

Bomgaars Sioux City, S.D.-based farm-andranch retailer Bomgaars Supply opened in the site of a former Shopko building. The 36,000 sq. ft. store celebrated its grand opening in December, bringing the chain’s store count to 95.

delaware

New Castle

US LBM US LBM has opened a new Universal Supply Co. roofing and siding location in New Castle, Del. The location is US LBM’s eleventh new roofing and siding focused greenfield to open since 2018 and the company’s first location in Delaware.