News I published 06 December 2023 I Dirk Hoogenboom
The Impact Of The Pandemic On The Home Improvement Market
With hindsight, this is not that strange. Consumers started to spend more time indoors in their houses due to lockdowns and being forced to work from home. In doing so, two of the three main drivers behind the surge in home improvement jobs were fulfilled: without the need to travel to the office and limited outdoor activities, more time was available to pick up home improvement projects, and by spending more time indoors, consumers were confronted with much more possible home improvement projects. With this, I mean that consumers, by spending more time at home, suddenly saw that the walls could use a new paint layer or that their ‘home office’ could do with some improvements. The third element in this equation is the budget. The need and time were there, but doing home improvement jobs also requires money. Due to the lockdowns, consumers suddenly had more budget available, as spending on things like restaurants, etc. plummeted. Furthermore, the holiday season(s) were badly compromised, so less money was spent on holidays as well.
Country overview
From April onward, we interviewed consumers in 11 European countries about the impact the coronavirus pandemic had on their home improvement behaviour. The full, free report is accessible via our website. The link can be found in the comments below. In April, already 19% of European consumers indicated that they were conducting more home improvement jobs than usual due to Corona. This increased to 25% among millennials. This effect persisted; in our latest measurement of January, 23% of European consumers indicated that they are conducting more home improvement jobs. Again, this was the highest among millennials (31%). The majority of the jobs done throughout the last couple of months were decorative jobs.
Not all were positive and tough. One major element of the European home improvement market is DIFM, or do-it-for-me. However, many consumers were and are still wary of having professionals working in their homes. In our latest measurement, 50% of European consumers stated that they would rather postpone DIFM jobs for now. At its height, this was 71%. So for professionals working mostly on residential renovation projects, the coronavirus crisis is having a clear negative effect.
Now for the key question: will this surge in home improvement jobs continue in 2021? The short answer is yes. Our indications point towards a continued high level of home improvement jobs done. 27% of European consumers are expecting to spend more money on home improvement jobs in 2021 than they did in 2020. That being said, for the coming 3 months, the share of consumers stating they would be doing more jobs is more or less the same as the group stating that they would do fewer jobs. This means that the number of jobs done would most likely stay at the high level of 2020, but more money per job would be spent. This could be an indication that consumers are picking up larger jobs.
Barriers for home improvement jobs
So what could the potential barriers be? The first of the most obvious ones is the end of the coronavirus pandemic, either due to mass vaccinations or a more organic decline of the infection rate. This would lead to more spending on holidays, going out to eat, etc., thus decreasing both the time and budget available for home improvement jobs. But this still might take some time…
Also, hard lockdowns where the DIY stores are forced to close (like in the Netherlands at the moment) will have a negative impact. Even though consumers are ordering home improvement products online at a higher rate than ever before, the closure of the DIY stores will have a negative impact.
We have been supplying these reports free of charge to our subscribers to the European home improvement monitor. But we would like to share our latest report with the rest of the industry free of charge, as it’s such crucial and interesting information, and we also want to give something back to the industry.
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