In a recent publication by the Joint Center for Housing Studies of Harvard University, opportunities for growth in the home improvement industry will continue to increase. The report found that over the next decade, strong demand for rental housing has opened up that segment to a surge of capital investment. Also, a shortage of affordable housing makes the large stock of older homes an attractive option for buyers willing and able to invest in improvements. There will also be opportunities for specialty improvement products and services focused on energy efficiency, environmental sustainability, and home automation.
Right now, homeowner spending is concentrated in metro areas with high home values and household incomes. The top 25 major metros tracked by the 2015 American Housing Survey accounted for about 45% of the national total. These top metro areas are mostly located in the western and northeastern areas of the country.
Demographic trends, read aging baby boomers, should continue to drive the market over the next decade, with older homeowners accounting for more than three-quarters of the projected growth.
To read the full report, Demographic Change and The Remodeling Outlook, go to the Joint Center for Housing Studies of Harvard University.