The forecast for the home improvement industry is looking very positive. In October, Remodeling Futures Program, at the Joint Center for Housing Studies of Harvard University released its third quarter report on the outlook of home improvements for 2018. Per Leader Indicator of Remodeling Activity (LIRA, October 19, 2017), yearly gains in home improvement spending by October of 2018 will have increased from 6.3% to 7.7%. These statistics do not take into account the future spending for repairs and renovations due to natural disasters, but those figures will alter the market significantly.
“Recent strengthening of the U.S. economy, tight for-sale housing inventories, and healthy home equity gains are all working to boost home improvement activity, ” says Chris Herbert, managing director of the Joint Center for Housing Studies. “During 2018, owners are projected to spend in excess of $330 billion on home upgrades and replacements, as well as routine maintenance.”
Although most of these improvement dollars will be spent by older homeowners, there is an uptick of the younger generation entering the housing market. The tight market brings the concern of affordability to the forefront, but statistics show that an increased number of millennials are making choices to buy older homes and spend on renovations and repairs. Various factors support the underpinning of an increased market, but as the economy steams ahead and consumer confidence builds, the home improvement industry will continue to surge upward in 2018. Great news for our industry!