What’s Next for the Home Improvement Industry in 2023?
After years of speedy growth, the home improvement industry is beginning to cool, but a strong backlog of new projects will carry over into the year ahead
Dec. 29, 2022
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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.
