Home Improvement / March 13, 2023
When the Great Recession hit the United States in 2008, the plummeting of consumer spending was one of the first of many rippling effects to be seen and felt by businesses across the country. Like many industries, the home remodeling industry experienced a significant setback understanding that, unless absolutely necessary, homeowners were not going to be dipping into their pockets for any kind of house work.
Fortunately, with the progress made over the last 6 years, the U.S. economy is now on the rise and home improvement companies are beginning to see the light at the end of the tunnel. Home values are starting to increase and interest rates are staying low. This economic headway is causing homeowners to resurrect their home projects wish list and rethink just “how big” of a renovation they want to make.
In a recent article released by the Boston Globe, author Priyanka Dayal McCulskey shared the story of one couple, David Sinclair and Sandra Luikenhuis, to give insight on the new economic outlook consumers are latching onto. When water began leaking in their bathrooms, David and Sandra knew it was time to schedule some renovations. Although only minimal work was needed, they decided to use the opportunity to completely transform their current bathrooms’ design and invest thousands of dollars into a modern sleek look. When asked what exactly urged them to write such a hefty check, David stated, “We’re definitely in a spending mode right now because of the stock market and overall positive signs in the economy.”
David’s not the only one developing this way of thinking. Priyanka reported a story of another couple, Lisa Laich and Richard Lee, recently spending close to $60,000 on upgrading their 1930’s Colonial-style home. With their home value appreciating about 20% over the past two years, investing in their home seemed like a no-brainer.
Apparently, stories like these are just ones of thousands contractors and home improvement companies are starting to hear of and play a part in. According to the Joint Center of Housing Studies at Harvard University, spending on home remodeling is on track to surpass the $145 billion spending peak of 2006 by the end of this year. That statistic alone is proof as to why the home improvement industry is exploding like it is. Consumers are becoming confident and educated. They’re choosing to reap the full benefits of a thriving economy by placing their dollars into their home.