Can the home improvement market continue to grow?

Jasmine Garsd Feb 24, 2020
HTML EMBED:
COPY
Home improvement is a big part of Home Depot's and Lowes' business. Scott Olson/Getty Images

Can the home improvement market continue to grow?

Jasmine Garsd Feb 24, 2020
Home improvement is a big part of Home Depot's and Lowes' business. Scott Olson/Getty Images
HTML EMBED:
COPY

Both Lowe’s and Home Depot are releasing quarterly earnings this week. A large part of their business is home improvement, which has been on the rise for years. But will the remodeling boom continue?

If you’ve turned on your TV in the last few years, you might have noticed … there are a lot of home improvement shows. 

According to Abbe Will, a researcher at Harvard’s Joint Center for Housing Studies, there was a 5% growth in the market for home improvement last year. That’s because it’s been easier for Americans to fix what they’ve got, rather than buy. 

“Homeowners aren’t seeing the types of homes that they want or, also, can afford,” she said.

Now, though, that might be changing.

“We are starting to see levels of new home construction that is finally starting to relieve that undersupply pressure, which will ultimately benefit the home improvement-related companies,” said Alex Pettee, president and director of research at Hoya Capital Real Estate.

That’s because, Pettee said, another big incentive to remodel is trying to sell your home so you can buy a new one.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.