AUGUST 2020 RETAILOBSERVER.COM
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• For projects that continued through the pandemic, designers were
less likely to be used, at a rate of 25% compared to 38% pre-
COVID-19.
The kitchen and bath market tends to recover more quickly than
other indicators in times of economic uncertainty, and it is intimately
tied to the housing market. A strong housing market is often reflected
in healthy remodeling growth. And applications to purchase a home
are once again on the rise after a major decline at the start of the
COVID-19 crisis. While applications are still below pre-pandemic
levels, with mortgage rates 1% lower than they were in 2019, there are
positive signs for consumer spending ahead.
Additional key consumer insights and spending habits include:
• More than one in four homeowners (28%) cited limited finances as
an impact of COVID-19 on remodeling plans. But some noted
unexpected benefits as well, including more time to pursue DIY
work (11%) and more involvement in the design and planning of
projects (5%).
• For the 19% of remodeling jobs that carried on through the crisis,
more used DIY, with only 35% saying they hired a professional to do
all the work, compared to 50% of those with projects completed
earlier in the year and 42% of those who postponed. One of every
three continued projects (34%) relied on a combination of DIY and
a professional or friend, compared to 28% of postponed and 14%
of completed.
• More than six in ten homeowners (64%) still use cash from savings
to finance a kitchen or bath remodeling project. Active projects in
mid-April were more likely to be paid by credit card (19%) compared
to deferred projects (13%), and deferred projects were far more
likely to be financed with a home equity loan (11%, compared to 2%
of active projects).
