"I assume it is because of low interest rates; people are scared that interest rates are going to go up, so they're trying to do more remodeling now since the money is easier," said Proper.
More than two-thirds of home renovation firms reported 2015 year-to-date revenues and profits to be at or above pre-recession levels, with one in five firms or more reporting revenues and profits to be significantly higher, according to a recent report from Houzz, a remodeling website.
"While industry confidence remains strong for the remainder of 2015, professionals tell us that the shortage of skilled labor continues to be a key challenge to growth," Nino Sitchinava, principal economist at Houzz.
Spending in the repair and remodeling industry is expected to grow to $300.5 billion in 2016, according to John Burns Real Estate Consulting. The bulk will be in small, discretionary projects, like kitchens and bathrooms. Researchers at JBRC are projecting home price appreciation to be 4.2 percent next year, and they estimate that each 1 percent of real appreciation drives 1 percent incremental higher average project size for both big and small projects, as well as a 1 percent increase in average small project spend per remodel.
The beneficiaries of this new boom will undoubtedly be material retailers and manufacturers. http://www.youtube.com/watch?v=NRnAYZCLdVMIn its second-quarter earnings report, Home Depot raised its 2015 profit outlook for the second time this year. Manufacturers such as Masco, Whirlpool and Sherwin-Williams are all seeing earnings growth. http://www.youtube.com/watch?v=-7xqwKDnaCQthanks to renewed confidence and investment in housing.
http://www.cnbc.com/2015/10/16/new-kitchen-new-bathroom-why-the-time-is-now.html
