By Selina Stoller, Summit AmeriFirst Holdings, LLC
According to Harvard University’s Joint Center for Housing Studies, Americans are expected to spend $316 billion on remodeling their homes in 2017, up $20 billion from last year.
As a shortage of newly built, single-family homes in the United States locks buyers out of the market, renovations of existing homes have brought huge revenue growth to home-improvement companies.
Financial analysts expect Lowe’s to post adjusted earnings on a per-share basis of $4.62 in its current fiscal year, up from $3.99 last year. Home Depot Inc. is forecasted to post earnings of $7.24 in its fiscal year, up from $6.45 a year prior.
Throughout the crash of the housing market of 2008, Americans invested little in their homes, mainly because they lost value. In 2009, Americans spent $222 billion on renovations, or about 30 percent less than today.
Because home prices are rising, Americans have boosted confidence which makes them apt to spend more when it comes to remodeling their homes. According to HomeAdvisor, the average household expenditure on home renovations increased by 57 percent in the last year. Within the past year, remodels, additions and exterior renovations have topped the list of HomeAdvisor’s most popular service requests, with homeowners spending an average of $1,869 more on home improvement projects over the year prior.
According to Zillow Chief Economist Svenja Gudell, there are about as many houses for sale in the United States as there were in 1994. The difference is that there are 63 million more people in the market now than there were in 1994.
In June, existing-home sales declined 1.8 percent from the previous month because of a shortage of inventory.
As for millennials, the majority are unable to purchase a home because of student loan debt. Those who are buying homes are investing in ones that need a significant amount of work.
- 7 Aug, 2017
- Josh Smith