What’s Next for the Home Improvement Industry in 2023?

After two years of record growth, soaring housing costs are expected to slow home improvement activity in the year to come, though the remodeling sector is still expected to grow ​​through­out 2026, according to the Home Improvement Research Institute. Home improvement products purchase rates soared throughout the majority of 2022, but supply chain disruptions forced a growing number of contractors to test out new materials.

By Novem­ber of 2022, 57% of home­own­ers report­ed post­pon­ing projects due to rising costs, material availability, or other setbacks, up from  42% in May.

Infla­tion and a prob­a­ble 2023 reces­sion will affect how much home­own­ers spend on home improve­ment going forward.

Ana­lysts fore­cast total home improve­ment prod­ucts mar­ket growth to decel­er­ate from 7.2% in 2022 to 1.5% in 2023, with the con­sumer and pro­fes­sion­al mar­kets grow­ing by 0.6% and 3.6%, respectively.

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