The real estate market at the start of 2021 continues to see many of the same trends that defined the industry in 2020. Due to shifts to remote work and education, people are buying and building homes at a faster pace. That shift has seen the home construction and remodeling industry grow throughout 2020 and into 2021. General contractors, home builders, HVAC technicians, electricians, and plumbers, are all seeing more work.
According to a study, more than 1 in 5 Americans will be working remotely by 2025. That number is projected to be north of 36 million total people. It also represents an increase of nearly 90% compared to the start of the coronavirus pandemic. That places a premium on space within your home that functions within work-life balance.
New home construction surging
The suburbs are once again becoming popular with home buyers, who are looking for space as they trade away city living. An increasingly popular choice is building a home from the ground up, customized to meet all of the buyer’s specific needs. With existing home inventory at low levels, building a home can be seen as the easiest way forward. That means hiring a home manufacture or building company and working with them to design and build your home to your specifications.
According to the U.S. Census Bureau, in November 2019 more than 1.54 million houses started the construction process. That’s an increase of 1.2% compared to October and nearly 13% higher than November 2018. Additionally, an estimated 1.64 million building permits were issued for home construction. Predictions for home new home construction throughout 2021 are expected to further increase an additional 9% compared to 2020.
Demand for new home construction is there and now it is up to businesses and the various supply chains to keep up with demand.
Home remodeling a key priority
A new home is far from a mandatory purchase, especially if you recently bought it. Current homeowners are refinancing their mortgages to take advantage of record-low rates while using the equity built up to finance home improvement projects. While some smaller projects can be tackled directly by homeowners, many of these projects are complex. These complicated projects require you to hire a general contractor or specialist.
Chief among those is a dedicated work and/or learning space to accommodate working from home and virtual learning. Having at least one area with a dedicated workspace is now mandatory. Converting a spare bedroom, updating a current office, or creating a multi-function space that can seamlessly incorporate living and working, are all ways to get the space you require.
Beyond the office space, homeowners are also focusing renovations on the outdoors. Patios, decks, and porches can create or expand upon outdoor space. New windows or large doors can help incorporate a seamless flow between indoor and outdoor spaces.
The more “traditional” upgrades of kitchens and master bathrooms continue to be a major part of home renovations. Restaurants shifting to carry-out or delivery places additional emphasis on the kitchen and eating areas for families. Master bathroom upgrades can also serve as an oasis for homeowners. More than 40% of homeowners who renovated a bathroom in 2020 say that “rest and relaxation” is the key component of their upgrades.