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The Remodeling Market Makes Its Big Comeback

Home building may still have much room for improvement but when it comes to home remodeling, there’s news that should be music to the ears of kitchen and bath refinishers: remodeling spending from homeowners in 2015 may reach an all-time high.

That’s the good word from Harvard University’s Joint Center for Housing Studies in its new bi-annual report entitled “Emerging Trends in the Remodeling Market.”

Among highlights of the report:

  • The typical homeowner in 2013 spent an average of $2,500 on home improvement projects, more than 8% above the average posted between 1995 and 2005.
  • Kitchen and bath remodels accounted for 17.2% of home improvement spending.chart1
    Source: Joint Center for Housing Studies of Harvard University
  • 47.8% of all people driving home improvement spending are Baby Boomers, making them the largest share of the remodeling market by far. Still, even though they spend the most on remodeling than any other generational segment, Boomers are generally spending more of their budget on home replacement/maintenance projects in the way of roofing, doors and plumbing rather than remodeling projects.
  • Keep a close eye on GenXers (35-55 years old) who are moving into a stage of life in which spending on home improvement projects will commonly increase. These younger homeowners are already spending a larger percentage of their budgets on kitchen and bath upgrades than Boomers.
  • Millennials (under the age of 30) are lagging on home improvement projects due in part to their trend of marrying and having children later in life compared to previous generations. Millennials also have a higher incidence of living with a family member, in some cases as a result of student loans, employment challenges and housing affordability. This has implications for the remodeling market because studies have shown that homeowners who are married or have children tend to spend far more on remodeling projects than single homeowners. However, as Millennials move into home ownership and in turn, home improvement, the impact on remodeling among this generation could be profoundly significant.

To read more of this very insightful report on remodeling trends from Harvard University, click here.

Dani Nichols

I started out with NAPCO in 1996, shortly after it was purchased by Steve Coven. Both Steve and I shared a vision of growth for NAPCO. Always hungry for knowledge, I learned whatever I needed including sales, marketing, web development, operations management, HR, building and retaining a customer base. Whew! It has been a lot of fun because in the end, I really like working with our customers. They make it all worthwhile for me.

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