The increasing frequency and intensity of weather and climate-related disasters is changing the focus of companies in the remodeling industry, according to a recent blog titled, Disasters are a Growing Force in the Home Improvement Market, published by the Harvard Joint Center for Housing Studies.
Data from a study entitled Improving America's Housing 2025 reveals that, in 2003, annual spending for disaster repairs totaled less than $9 billion. This compares to an average of $23 billion from 2021 through 2023, after adjusting for inflation. The cost to restore a damaged home averaged $17,900 in 2003, compared to an inflation-adjusted cost of $22,100 in 2023.
More spending on disaster-related repairs may be just the beginning, however. The rising cost and diminishing availability of homeowner’s insurance is likely to increase the demand for projects designed to make existing homes more resilient, particularly in disaster-prone areas. Responding to these changes will require contractors to increase both the size and focus of their Businesses to optimally support their Customers with their changing needs.