Building Products Industry Trends: Remodeling Activity Surges as Consumers Spend More Time at Home

Long-term demand drivers in the U.S. housing market underpin a multi-year growth outlook in residential building products, according to a new building products industry report released by the Building Products investment banking team from Brown Gibbons Lang & Company (BGL).

One of these building products industry trends driving growth is consumers continued strong desire to invest in their existing homes.

Following COVID-19 lockdowns, consumers were forced to spend more time indoors, leading many to turn to home renovation projects as they awaited restrictions to ease. As a result, growth in repair and remodeling (R&R) activity began to surge in 2021. In addition to pandemic-fueled expenditures, homes built during the housing boom experienced between 2004 and 2006 began to enter their prime remodeling age. This confluence of factors fueled even higher spending, with R&R expenditures reaching a record $490 billion in 2023 – up from $336 billion in 2020.

As many expected, growth began to slow as restrictions eased and pent-up demand began to moderate. However, consumers are still indicating a strong desire to invest in their homes. In 2024, $450 billion+ is projected to be spent on repair and remodeling (R&R) activities – representing a very healthy level of activity.

Many consumers who would be buyers of new homes if it were not for current mortgage rates will likely turn to investments in their existing homes for the time being as a budget conscious alternative. This, in conjunction with high prices of existing homes, are expected to keep R&R activity strong into the foreseeable future.

To read the rest of our building products industry deep dive, you can download our full Insider report here:

Our Building Products investment banking team is highly experienced in the residential and commercial construction and infrastructure segments. We have successfully completed transactions across a wide range of end markets, from basic building materials such as aggregates, lumber, and pavers and precast products, to complex fenestration extrusions, glass fabrications, curtain wall, and highly engineered specialty coatings products.

Led by Andrew K. Petryk, BGL’s Building Products investment banking team leverages its industry knowledge and global relationships to execute highly effective and efficient transactions on behalf of our clients. Please reach out via our contact form below to learn more.