Home Remodeling is Sweeping the Nation
According to a study by the Joint Center for Housing Studies at Harvard, things are looking up in the home improvement department. The study reveals that consumers are opening up their wallets once again and spending it at the home improvement store and with home improvement contractors. This is positive news for both consumers and all of the retailers and contractors that in the home improvement business.
The Facts and Figures
The study reveals some telling facts and figures on where the home improvement industry is heading in the near and not so distant future.By the end of March, which also marks the end of the first quarter of the year, consumers are expected to have dished out $125.1 billion on home improvements. This is a 9.2% increase over the $114.6 billion spent by the first quarter of 2010. Spending is not expected to end here either. Between April and June, which is the second quarter of the year, home improvement spending is expected to rise by another 13%. This will be the biggest spend on home improvements in five years. By 2015, consumers are expected to spend 3.5% more each year on home improvements.
In short, things are looking up in the minds of consumers, in the economy and in the pockets of home improvement businesses.
A New Perspective
Consumers have and need a new perspective. Some are simply tired of existing in the gloom and doom of a recession. The unemployed may simply new a small fix so they stop staring at the same four walls all day until they can find a new job. Home remodeling may be as small of a fix as throwing on a new coat of paint and installing new light fixtures, or as complex as remodeling floors, kitchens and bathrooms.
Rehab and TLC
Then you have the segment of consumers that are buying up homes from foreclosure and in short sales. The trending theme with the majority of these types of homes is that they need some rehabilitation and some tender loving care by its new homeowners. Foreclosures and short sale homes tend to have missing parts, damaged areas or simply need a facelift. This is leading many new and first time homebuyers to home improvement contractors and stores to make it happen.
The bottom line is that all of this spending on home improvements is good new all around. Consumers are feeling less uneasy and more confident about the economic situation, so they are spending again. Consumer spending boosts the local economies where they live and ultimately spreads across the country—helping with recovery. And, it doesn’t hurt sales and business for the home improvement industry, which too helps to boost the economy.