Has The Pandemic Affected Home Improvement Negatively Or Positively?

Home Improvement

Has The Pandemic Affected Home Improvement Negatively Or Positively?

While home improvement has always been a constant for homeowners, especially if you live in the colder regions, there has been a definitive surge in spending in that area since the pandemic began. Some estimates have put the increase at almost 50%.


But why has this been the case? There is an old proverb that says: necessity is the mother of invention. That is to say home improvement became necessary, in many cases. How so? Because within the last two years Americans have been home more and have been forced to use their homes for work. This has necessitated building home offices including getting new furniture and equipment for the offices.


Additionally, the kids had been home as well and needed spaces to play as the playgrounds were closed. This made many homeowners reimagine how their backyards should be configured so that the children could be accommodated. Another reason that homeowners gave for renovating their homes, according to Max Anderson, chief economist at porch.com, is simply time on their hands to do repairs and improvements that were simply put off.


How did they pay for the improvements? Traditionally, homeowners tend to borrow money through a home equity loan or line of credit. The interest on the loans may be tax-deductible under very specific conditions. As I have perennially emphasized, always talk to your accountant or tax professional if you plan to take this, or any route that can have tax implications. Homeowners have used, also, the money gained from the government-provided stimulus due to the pandemic. In some cases, homeowners have dipped into their savings. The home improvement industry has gained from this increase in spending. Last year Home Depot reported an increase in revenue of approximately 23%. Lowes reported an increase of above 28%.


How has the Pandemic affected the PEM Of the Entrepreneur?


Private contractors have reported an increase in home improvement jobs within the last year, although I cannot find specific figures on the degree of increase. A licensed unionized carpenter in Brooklyn reported to me that when he was laid off due to work shutdown during the early days of the pandemic, he subsequently found private work for home improvement projects. While he is back at work on a major project at one of the airports, he still gets private jobs, which has necessitated his hiring staff. His income has increased by 30% as a result.


The pandemic has taken away opportunities in certain areas but has provided opportunities for entrepreneurs in other areas. The construction industry is one such area. This is a good opportunity for those who have already formed construction companies and were ready to seize the opportunity from the get-go. There is still an opportunity for those who have the skills and qualifications but procrastinated, to begin the process today towards capitalizing on this Avenue of opportunity. But the watchword must always be: do your due diligence. Do not cut corners. Get all appropriate licensing. And last but not least, always talk to a professional.


– Chester Peters

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