2020: The Year for Home Improvement, 2021: The Year for Continued Industry Growth

Gain insights into how consumers spend their money on home services so that you can deliver the experience they want (and expect) in 2021.

Last year, a global pandemic threw a massive wrench into our lives. Vacations were cancelled, restaurants & bars shut down, and commuting to work became a thing of the past for most. As typical travel, dining and entertainment expenses began to dwindle, it only made sense for consumers to put their money towards the places they were basically bound to: their homes.

 

A Deeper Look into 2020’s Home Spending

With homeowners spending so much time inside their homes in 2020, they began to adopt new uses for existing spaces, take notice of problems, and see more wear and tear than ever before. And for these reasons, it’s vital that home pros understand how last year re-shaped consumer spending on home services. Recently, Home Advisor released their annual State of Home Spending report, featuring data from surveyed homeowners that completed projects throughout 2020. To help you best serve your customers and make 2021 your most successful year yet, we encourage you to consider the following key takeaways:

 

    • Millennials are spending the most on home improvement projects

According to the report, millennials are not only rapidly buying homes, but they’re spending more than any other generation when they do. The research has also showed that millennials are spending 60% more on home improvement projects (an average of $9,206 per project) than in 2019 and completed on average 30% more projects than they did in 2019.

 

    • Home maintenance spending shot up nearly 189% from 2019

Between home improvement spending, home maintenance spending, and home emergency spending, home maintenance spending changed the most compared to last year. In 2020, homeowners completed an average of 7.5 home maintenance projects and spent $3,192 on average for each project. These projects were a mix of general maintenance, cleaning, and landscaping projects.

 

    • Your COVID-19 policies matter to homeowners

This data revealed that 71% of homeowners want to see COVID-related business updates from home pros and 73% said that sharing COVID-related information and promoting safety measure impact their hiring decisions. That said, even though there’s been light at the end of the COVID-19 tunnel, it’s important that your home improvement business still communicates COVID-related policies to prospective customers.

 

    • Homeowners are focused on updating the most used areas of the home

When asked what projects they would take on if given $10,000, 27% of responding homeowners said a kitchen update, followed by bathroom updates (18%) and outdoor updates (17%). That said, it appears that since COVID-19 has increased the amount of time spent in the home, homeowners are currently focused on updating the areas of their homes that they spend the most time in.

 

 

 

Ultimately, HomeAdvisor’s 2020 State of Home Spending report provides powerful insights that home pros can leverage to better understand the spending habits of their prospects and customers. You can view the entire report here, but once you’ve digested this information, it’s important that you continue to dedicate time to learning about your prospective and existing customers. With MarketSharp, an industry-specific CRM system designed for residential remodelers and contractors, you can leverage powerful activity tracking and reporting tools to learn key information about your clients’ preferences, needs, and spending habits.

 

To learn more about how you can use MarketSharp to better understand your customers, schedule a demo with one of our team members!

 

State of Home Spending Report – HomeAdvisor. Home Improvement Tips & Advice from HomeAdvisor. (n.d.). https://www.homeadvisor.com/r/2020-true-cost-report/.