Though it may seem homeowners are beginning to pull back on the remodel side of the market, better days are ahead.
“Remodeling is slowing, but there’s a historic boom coming,” Eric Finnigan, VP of research & demographics at John Burns Real Estate Consulting, told Yahoo Finance in an interview.
There are three factors likely to help this sector in the coming years according to Finnigan.
With aging homes on the rise, it’s expected that the remodeling market will have 24 million homes in need of repairs such as upgrades to roofs, floors, heating and cooling system, kitchens, bathrooms, and more.
“[These homes are] basically going to go through a complete sort of facelift,” Finnigan said. A home enters its “prime modeling years” when it reaches about 20-40 years old.
“We’re seeing a big wave of homes entering that cohort, [those] sort of prime remodeling years,” Finnigan said.
According to Aol, Though expectations for remodeling in the future may be high, current dynamics in the market have seen these projects put aside in recent months.
Home Depot (HD) warned in its latest earnings report the company expects demand for home improvement to “moderate.”
“In the third quarter, we noted some deceleration in certain products and categories, which was more pronounced in the fourth quarter,” Home Depot CEO Ted Decker told analysts on the company’s earnings conference call on Tuesday.
Comparable sales in the U.S. fell 0.3% for Home Depot in Q4, missing expectations for a 0.3% gain, according to estimates from Bloomberg.
