The remodeling industry has a growing problem on its hands that must be addressed immediately.
Market Conditions Favor Continued Growth
Homeowner expenditures on remodeling rose 6.6% during the four quarters ending Sept. 30 to an annualized rate of $125.2 billion, according to the latest Remodeling Activity Indicator report from the Joint Center for Housing Studies at Harvard Universit...
- The Home Improvement Research Institute (www.hiri.org) predicts that sales of home improvement products will grow from 2005 to '08 at an annual average of 4.7%, greater than the growth rate forecast for overall retail sales.
- Corporate finance analyst Natexis Bleichroeder says two main factors are driving the home improvement market: 1) home resales, which through September were 9.7% ahead of last year's record pace, and 2) mortgage refinancing and home equity borrowing for remodeling projects.
- From its fall 2003 survey, the American Affluence Research Center (www.affluenceresearch.org) reports that 21% of respondents (the sample comes from the wealthiest 10% of U.S. households, those with minimum net worth of $750,000) plan to have major remodeling done on one or more homes during the next 12 months.