The Fastest-Growing Home Improvement Project Actually Has Nothing to Do With the Home

Electric Vehicles Take a Bigger Share of the Car-Buying Market, With EV Charging Station Home Installations on the Rise

The Cox Automotive report, citing data from Kelley Blue Book, leaves no room for doubt: Electric vehicle sales are growing at a steady rate.

Right alongside EV sales, home EV charger installations are also climbing; after all, these cars need to be charged in order to operate.

BobVila.com readers were right on trend: EV charger installation was the top project professionals were hired to tackle. Readers from California and New Jersey made up nearly 30 percent of the customers hiring for this project in September. Furthermore, reader purchases of best home EV chargers surged in August 2023. With the peak month of hiring directly following the peak month of purchasing, it’s possible to conclude that many EV owners who purchased a charging unit ended up hiring to have it installed in September.

While some of these devices can be installed by the average homeowner, there are key benefits to hiring. According to Christopher Maiwald, the founder and CEO of Lectron (a leading manufacturer of EV charging stations), “For a hardwired installation, which provides higher amperage and a more reliable, steady current flow to the EV, it’s recommended to hire a professional with the necessary specialized tools and knowledge.”

Even data from Google highlights that the overall popularity of EV-related topics has basically doubled since last year, with a vast majority of searches happening in California.

There’s an abundance of proof that more and more people are expressing interest in EVs and that this buying trend is on the rise. A closer analysis of the key drivers behind it reveals that exponential growth in both car sales and charger installations is possible in the near future.

Gas Prices, Global Warming, and Greater Access

Q3 saw three conditions come together to create a near-perfect storm that likely pushed car buyers to consider and ultimately choose more fuel-efficient vehicles.

Gas Prices

Higher gas prices are likely a key reason for the growing number of electric vehicle sales and charger installations. The U.S. Energy Information Administration’s log of the cost of gasoline shows that the price per gallon has been steadily increasing since January 2023. While 2022 overall saw higher prices due to the conflict in Ukraine, prices remained (and continue to be) high relative to the average price-per-gallon in 2021 and 2020. Gas prices for 2023 peaked in August at the height of the summer season—a season during which many choose to travel more than usual by car. In states where gas prices are higher, EV sales also tend to be higher: Data from AAA shows that California and Washington State have some of the highest gas prices in the country, which correlates with the U.S Department of Energy’s assessment that both these states have some of the highest electric vehicle registration counts.

Global Warming

The pace of climate change paints a picture so dire that many homeowners and car buyers are increasingly becoming conscious of their carbon footprint. Bleak headlines such as NASA’s news that July 2023 was the hottest month on record since 1880 seem to be more and more frequent, creating a sense of urgency. Gen Zers (defined as individuals born between 1999 and 2004) are more likely to address climate change, according to the Pew Research Center; coincidentally, in the past year, they have taken up a larger, albeit still small portion of all home buyers, at 4 percent of the housing market per a 2023 report released by the National Association of Realtors. With a new generation of homeowners with climate change concerns growing in size, it’s likely that EV purchases and charger installations will also rise. Maiwald adds that technological developments in EV battery production and charging station installation can play a key role in helping the EV market grow, “promising faster charging times in the near future. This means a more streamlined and efficient EV charging experience for consumers with high-powered home-charging stations.”

Greater Access

With high-end Tesla being the dominant EV manufacturer in the industry (reaching a 2023 high of 62 percent market share in Q1, defined as the period from January through March 2023), it’s almost no surprise that up until recently, it’s likely that buying an electric vehicle was seen as something only a person with a relatively high income could afford.

However, the market is changing quickly:

• There is more competition. Other car manufacturers, including makers such as Audi, BMW, Mercedes, Ford, and General Motors, have started releasing EV car and truck models and are progressively taking a bigger share of the EV market. In fact, while Tesla still dominated the market in Q3, its share fell precipitously from 62 percent to 50 percent.
• Prices are down overall. To entice more customers, manufacturers are keeping their prices low. In fact, Cox Automotive reports that transaction prices actually decreased in Q3 overall, with Tesla cutting prices by about 25 percent. Luxury car manufacturers tended to lower prices as buyers flocked to cheaper models from non-luxury brands. And with non-luxury brands growing their selection of EVs, they have been able to increase prices by less than only 1 percent year-over-year.
• Access to charging stations is growing. Electric vehicles need charging stations, and an increasing number of available charging stations might also be fueling more demand for electric vehicles. A 2023 report from the National Renewable Energy Laboratory highlights that Q2 (defined as the period from April through June) saw an overall 4 percent growth in the number of public EV charging ports. This increase likely stemmed from demand, and the availability, visibility, and access to more public ports likely fueled even more EV purchases. Homeowners and car buyers can opt for a more environmentally friendly vehicle with the peace of mind that a charging station may be available close by. Owning an EV isn’t as demanding on time and resources as it was before, and more people are choosing to own an electric vehicle and have a charger installed at home.