2021 Remodeling Forecast: How To Capitalize On Positive Projections In Uncertain Times

ProSource | 12/10/2020 | Expert Advice

If 2020 has taught us anything, it’s to be prepared for the unexpected. Last year, nobody was anticipating the world-wide COVID-19 epidemic would nearly shut down our economy, yet in the process spur a surprising boost in residential remodeling.

While new homeowners are one of the biggest drivers of remodeling projects, spending around 30% more on upgrades than those who have lived in their homes awhile, COVID-19 flipped that scenario. This came about as families were trapped at home and decided they needed to create remote office space, study space and leisure/entertainment space.

As a result, renovation and repair spending exceeded the projections of both the Leading Indicator of Remodeling Activity (LIRA), which had predicted a 0.3% decline, and the Residential Remodeling Index (RRI), which forecasted a modest 2.0% growth.
The Leading Indicator of Remodeling Activity outlook for 2021

In fact, Metrostudy/Zonda expects that the number of major remodeling projects (worth $1,000 or more) completed in 2020 will have increased by a little more than 8% versus 2019.

Residential Remodeling Index outlook for 2021

Cautious Optimism For 2021
According to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University, we should see a 4.1% annual growth in renovation and repair spending for the first quarter of 2021. However, that rate is expected to decline to 1.7% by the third quarter. At the same time, the Metrostudy/Zonda Residential Remodeling Index (RRI) projects a 0.4% gain for 2021.

There’s also some optimism regarding the housing market based on still relatively low interest rates. Pair that with the explosion in remote work giving families the flexibility to move further out from cities to where housing is more affordable, which should increase remodeling demand.

Amid the uncertainty, it’s essential for remodeling professionals to focus on what they can control in order to capitalize on the opportunities that do exist.

Up The WOW Factor For Impactful Presentations
Pros can make prospective clients’ eyes sparkle with a stunning presentation that meets their style, function and budget requirements in ways they never dreamed possible. Start with the incredible product choices available at your local ProSource Wholesale® showroom or through our online catalog, including the latest trends in flooring, kitchen and bath products. 

As a ProSource member, pros will have a dedicated account manager who knows them and their business. They'll also have access to the services of our in-house kitchen and bath designers, free sample checkout to see how products look in the home, and much more.

Plus, on the ProSource website, homeowners can find completed project images, style and trend articles, and a huge product catalog that all offer fresh ideas and inspirations to consider in their next remodeling project.

Make The Best Use Of Your Time
Working smarter means managing details so pros can spend more time in front of prospective clients selling their services or on-site getting the work done. It starts by saving time and money with one-stop shopping at ProSource Wholesale for a multitude of products at wholesale prices.

ProSource also offers trade pro members a free online account through myProSource. This lets pros create a profile to attract new clients, track estimates and orders, collaborate with clients on their projects online, and publish photos of completed work to inspire prospective clients. They can also manage their ProSource business on the go with the trade pro app. View orders and estimates (past and present) and approve them when needed, get push notifications of status changes, and utilize secure payment options through a mobile device.

For homeowners, a free myProSource account offers a convenient online way to track, craft and share their remodeling project, including requesting estimates. They can also invite family and friends to watch the project unfold with posted photos. If needed, they can submit a ProSource Pros request to connect with a trade pro member who can transform their visions into reality.

Target Bigger Projects
Focus on remodeling and let ProTrade Credit™, a service exclusive to our members, professionally manage your commercial credit to provide you with the confidence to take on bigger jobs and accept extended payment timelines. It can also give you access to larger credit lines to meet your needs.

From online account access to review accounts and track jobs to flexible payment options and invoice creation, ProTrade Credit can help pros better control cash flow, allowing them to focus more on their remodeling projects and worry less about finances.

Capitalize On Tomorrow’s Opportunities Today
It’s time to capitalize on tomorrow’s remodeling market opportunities by connecting with ProSource today, either online or by visiting your local showroom.

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