Boding well for the home organization industry, the strong growth in home improvement and maintenance expenditures is expected to continue over the coming year. Year-over-year gains in annual spending will reach 9% in the fourth quarter and maintain that pace into 2022, according to the Leading Indicator of Remodeling Activity by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
“Residential remodeling continues to benefit from a strong housing market with elevated home construction and sales activity and immense house price appreciation in markets across the country,” said Carlos Martín, project director of the Remodeling Futures Program at the Center.
“With these tailwinds, annual improvement and repair expenditures by homeowners could reach $400 billion by the third quarter of 2022,” added Abbe Will, associate project director.
Respondents to the State of the Industry survey by Closets & Organized Storage magazine are also optimistic for 2022, with almost all (87%) anticipating the same or better revenues, including 64% citing better, and 23% predicting much better.
• 90% of survey respondents plan to raise prices in 2022, according to the Closets & Organized Storage trends survey. Meanwhile, 72% don’t currently charge for design services.
• Valued at $700.9 million in 2020, the North American garage furniture market is expected to reach $816.2 million by 2027, at a CAGR of 2.2%, according to Research and Markets.
• The top 5 specialty rooms most desired by over 60% of buyers are: laundry room, dining room, great room, home office, and separate living room, says NAHB’s study: What Home Buyers Really Want 2021 Edition. Also boding well for closet manufacturers, 46% of home buyers want three bedrooms.
• The global home office furniture market size was valued at $3,032.6 million in 2020, and is estimated to reach $7,615.2 million by 2030, registering a CAGR of 8.8% from 2021 to 2030, according to findings by Research and Markets.
Market Data Sources: Closets & Organized Storage magazine, Association of Closet and Storage Professionals, Houzz, The Freedonia Group, National Association of Home Builders, LIRA/Joint Center for Housing Studies of Harvard University., Cabinet Makers Association, Research and Markets, U.S. Census Bureau.
Category: Closets & home organization includes: walk-in and reach-in closets, garages, mudrooms, pantries, laundry rooms and related products.
Find more market data in the December 2021 FDMC Wood Industry Almanac.
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