Homeowner reticence, mask shortages, and other COVID-19 effects on the remodeling industry

Home remodelers are reporting a decline in homeowners' willingness to undertake major residential renovations due to the coronavirus pandemic, according to a recent survey by the National Association of Home Builders. At the same time, there are indicators that people are working to complete smaller home and landscaping upgrades as a result of stayat-home orders.

The NAHB survey of professional remodelers listed eight potential impacts of the COVID-19 pandemic on the home improvement market. A majority of respondents in each category said they had experienced the effect on the market, although in five of the categories they were more likely than not to say it had had a minor impact rather than a major one.

Ninety-six percent of respondents said there had been a slowdown in the rate of remodeling inquiries they were receiving, with 70 percent saying there had been a major impact on new inquiries. Ninety-three percent said there had been a general unwillingness among homeowners to undertake home improvements at this time, with 54 percent saying there was a major impact in this area. Eighty-four percent said there had been an increase in cancellations or delays due to the pandemic, with 46 percent saying these had impacted their business to a major extent.

Eighty-six percent said homeowners were more reticent about interacting with home remodeling crews. However, 55 percent said they only saw this concern to a minor extent.

Remodelers also said the pandemic was making it more difficult to acquire N95 masks for the work. Eighty-four percent said the pandemic was impacting the supply of these masks, with 65 percent describing it as a major impact.

Respondents were less likely to say that workers and subcontractors were unwilling to report to a job site due to the pandemic. Sixty-three percent said they had seen this effect, but 39 percent said it was only to a minor extent.

Fifty-nine percent said they had seen an impact on the supply of building materials, though just 10 percent said the pandemic had caused major disruption in this area. Fifty-four percent said the pandemic was affecting how much homeowners were willing to spend on a home renovation, though 36 percent said the effect was minor.

At the same time, homeowners appeared to be using the time confined at home to commit more to small home projects and gardening efforts. Scholastica (Gay) Cororaton, writing for the National Association of Realtors' Economists Outlook blog, says these undertakings can be very beneficial for home values and sales, as work such as garden installation, fence painting, and pathway repair can improve curb appeal.

According to information from the U.S. Census Bureau, retail sales at building supply dealers as well as stores selling building supplies and gardening equipment were up 1 percent between February and March. Sales at these venues were also up 7 percent on an annual basis.