Coronavirus Causing Home Owners to Pull Back on Remodeling

Filed in Economics, Remodelers by on April 23, 2020 1 Comment

A recent NAHB survey of professional remodelers shows the negative effect the coronavirus pandemic is having on the decision to remodel. More than 90% of remodelers in the survey reported a slowdown in both the rate at which inquiries are coming in, and in the general willingness of home owners to remodel at this time.

While 96% of remodelers said the virus was hurting the rate at which inquiries are coming in, a full 70% characterized the negative impact on inquiries as major rather than minor.

The survey listed eight possible impacts of the coronavirus on the remodeling market. More than 80% of respondents said the virus was having a noticeable effect on:

  • Home owners’ concerns about interacting with remodeling crews (86%)
  • Supply of N95 respirator face masks (84%)
  • Cancellations or delays of existing projects (84%)

In some respects, the impact of the coronavirus on the remodeling market mirrors what we’re seeing in the market for new homes. In both cases, the pandemic is having a number of significant adverse effects, but the strongest ones are the negative impacts on the behavior of potential customers.

NAHB Senior Economist Paul Emrath provides more details in this Eye on Housing blog post.

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  1. Alex says:

    My construction company went from having 9 months of work down to 2 months. All the cancellations have been due to not wanting us around them or layoffs. I have been in business for 15 years and this is always the busy time and calls are way down. From a few a week to about 1 every two weeks at best. I also find it sad as my suppliers are doing great. They can’t keep up with the sales since homeowners are doing all there own work. The stores have been packed and social distances cannot be abided by in all situations. And certainly no N95 masks, not since this started. This Winter might decimate the small business remodeling/construction companies in the Northeast. It’s already a slow time and this virus will still be here. Without testing or people just not caring about the potential for sickness or my workers…. this will create more companies closing that won’t survive the spring/summer. The 2000’s crash wasn’t good but we rode it out quite well. This time around…. I’m not so sure things don’t look good.

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