Housing, Remodeling Trends, and The Economy Brad Hunter, HomeAdvisor Chief Economist June 10, 2016
Rising Tide First Son 2
Consumers’ New Frugality • Department store sales down. Home Depot and Lowe’s are the bright spots. What does this tell us? • People are being more careful with their money. Researching more. Looking for the most bang-for-the-buck. 3
The Trend in Home Improvement is Upward… • Discretionary projects are increasing • Major Improvements up 5% • Kitchen remodel: $19,993 • Maintenance and repair jobs over $1,000 rose from 34% to 47% Source: HomeAdvisor’s True Cost Guide Report 2016 4
Total Home Improvement Expenditures Major Remodeling Projects (Millions of 2013 Dollars) 30,000 25,000 20,000 15,000 10,000 5,000 0 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2014 2015 Kitchen Bath Source: HomeAdvisor (HA), JCHS (2014 and 2015 are HA estimates) 5
H.I. is Highly Correlated with Existing Home Sales. Why? People need services RIGHT AFTER a move! Source: HomeAdvisor 6
Home Improvement is Driven By…. • “Churn” (turnover) • The rebound in home prices and return of homeowner equity • Credit availability • Demographics • Flipping/”fixer-upper” investors 7
Brad Hunter HomeAdvisor Chief Economist | Twitter @BradleyHunter Brad Hunter spearheads HomeAdvisor’s analysis and tracking of housing markets and the home improvement industry using proprietary data from HomeAdvisor. In his former position, Mr. Hunter was chief economist and director of consulting for Metrostudy where he orchestrated hundreds of area-specific housing market studies over his 18 years at the firm. With nearly 30 years of experience in housing market forecasting, Brad Hunter is a Full Member of the Urban Land Institute (ULI) and has authored numerous articles and chapters in books for ULI, including Market Profiles . He is regularly cited in local and national journals, and has recently been featured in the Wall Street Journal, Bloomberg News and CNBC . He graduated in 1985 from the Wharton School of the University of Pennsylvania with a degree in economics and has been a guest lecturer at Harvard University. 8
Recommend
More recommend
