Remodeling Demand Is Way Up. Here’s What It May Mean for Investors’ Pocketbooks

Apparently, homeowners have been productive during these last few months of quarantine. According to new data from home design platform Houzz, remodeling and design pros saw an almost 60% uptick in demand in June alone.

In Boston, the jump was even bigger at 80%, while over in Atlanta, Chicago, and Houston, demand for these home contractors rose over 70%.

While this is certainly good news for those in the remodeling and contracting business, for fix-and-flip investors — or anyone looking to remodel a property, really — it’s less than ideal.

Not only does it mean potential project delays and scheduling difficulties, but it could also have a far worse consequence: higher costs.

Are you planning to remodel or flip a property soon? Here are the services that are most in demand this summer — and what you’ll probably pay more for when hiring out:

Remodeling a kitchen or bathroom

Contractors who specialize in kitchen and bath remodeling saw a 40% increase in demand in June. Though this might just be homeowners looking to improve their spaces while sheltered in place, there might be a health element to this uptick, too.

According to a recent report from the National Kitchen & Bath Association, health and wellness features in these rooms are popular requests these days. This includes things like touchless faucets, antimicrobial door handles and shower walls, water filtration systems, and self-sanitizing fixtures.

Installing a deck, patio, or porch

Homeowners are looking for more space and flexibility in their properties these days — and that means outdoor additions like decks, porches, and patios are in high demand. According to Houzz, requests for these types of contractors are up 178% over June of last year.

Adding a swimming pool or hot tub

Some homeowners are taking it even further, going beyond the outdoor entertaining spaces and adding recreational features like pools and spas, too. According to the Houzz report, swimming pool design and installation projects quadrupled between June 2019 and June 2020. They’re up a whopping 334% over the year.

Fixing or installing a fence

With a rise in outdoor features like decks, patios, and pools, it’s no surprise that fence work is surging, too. Houzz’s data shows fence installation and repair projects have jumped 166% over the year.

Landscaping the yard

Houzz also reports that demand for landscaping contractors has more than doubled, so if you’re looking to fix up the yard or plant a nice garden, you might just pay more for it. Tree planting is also in high demand.

The bottom line

Home remodeling professionals are getting lots of business these days — and it could impact your next investment. If you’re eyeing a new flip or just want to fix up an existing property, make sure you plan early. Wait too long, and you could find yourself with project delays or, worse, limited options.

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