Home Renovation Market Size Projected to Reach 6.2 Trillion Yen in 2018 and 6.5 Trillion Yen by 2019
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic home renovation market and has found out the current status, the trends of market players, and the future outlook.
Size of the home renovation market in 2018 has declined by 0.9% from the previous year to attain 6,217.8 billion yen. Refurbishment costs (of space both more than 10m2 and 10m2 or less) decreased by 4.1%, “Facility repairing and maintenance costs” decreased by 0.2%, and “Furniture and interior costs” by 2.5% from the previous year, respectively.
The recent sales performance at renovation businesses prominently polarized between those businesses showing stableness and those showing stagnancy. Such a status stems from the changes in competitive environment due to new market entry by electronics retail stores and DIY stores. For the future, the challenge for the market players is to how to differentiate itself from the others as the competition is likely to become by far fiercer.
The home renovation market is likely to grow stably, because of the following factors: More orders of renovation works left stemming from multiple natural disasters that hit the western parts of Japan in 2018; Mid-size to large-size construction works accumulated in the fourth quarter of FY2018 prior to the consumption tax increase scheduled in October, 2019; and lastly, the reward-point system for renovating newly-bought houses and condominiums aiming to alleviate the impact of consumption tax hike.
The market size for 2020 is projected to grow by 3.2% from 2018 to attain 6.4 trillion yen. While the reactionary fall can be expected after the consumption tax increase, the number of housing stock increases to expand “Facility repairing and maintenance costs” which is the main category of the home renovation market. This encourages the home renovation market as a whole to grow stably.
The copyright and all other rights pertaining to this report belong to Yano Research Institute.
Please contact our PR team when quoting the report contents for the purpose other than media coverage.
Depending on the purpose of using our report, we may ask you to present your sentences for confirmation beforehand.