U.S. Remodeling Industry is Back

U.S. REMODELING INDUSTRY IS BACK $300 billion After several years of solid growth, the remodeling industry is back near $300 billion and could easily post record-level spending in 2015. REMODELING REBOUND $324 $298 $291 $281 $280 $228 U.S. home improvement & repair spending in billions 2003 2005 2007 2009 2011 2013 WHO'S REMODELING? WHO ISN'T? Baby boomers accounted for almost half of all 2013 remodeling spending Millennials aren't yet buying homes; when they do, they will begin remodeling Owners in the country's largest metros spent 50% more than those in other areas Owners in distressed Sunbelt markets have been reluctant to invest in their homes OPPORTUNITIES FOR GROWTH Accessibility improvements to allow older adults to age in their current homes Sustainable and energy- efficient upgrades and improvements DIY spending as millennials begin to buy homes and renovate them Reinvesting in the nation's aging rental stock as demand soars INDUSTRY & LABOR TRENDS Larger remodeling companies are growing 3 times faster than the industry average. In 2013, 16% of construction workers were over the age of 55, compared to less than 9% a decade ago. Immigration will be an important factor as the industry tries to meet its demand for younger workers; nearly 30% of construction workers are immigrants. LOOKING AHEAD Home improvements generate 1.8% of national GDP. The slow economic recovery is holding the industry back, but as home prices firm, and new industry niches emerge, remodeling spending is likely to strengthen in the coming years. Data from the Harvard Joint Center for Housing Studies Improving America's Housing-Emerging Trends in the Remodeling Market © 2015, www.jchs.harvard.edu