"The nation's chronically aging housing stock, together with a lingering lock-in effect and a growing share of older homeowners who prefer to stay put, amounts to a trifecta for long-term remodeling and renovation growth expectations. In the near- and midterm, however, the industry continues to grapple with economic uncertainty and an intensifying pervasive labor capacity constraint. At the International Builders' Show (IBS) this week, builders struck notes of cautious optimism."
"Yes, it's a sliver of the top, but there's a lot of money there, and [those upscale households] are not really being impacted by cost. I think this could further influence optimism, because the luxury sector could continue to grow and expand there. So we don't see anything slowing down on the luxury [front], and it's definitely having a big positive influence, Darcy said."
A chronically aging national housing stock, a lingering lock-in effect, and a growing share of older homeowners preferring to stay put generate sustained long-term demand for remodeling and renovation. Near- and midterm growth faces economic uncertainty and pronounced labor capacity constraints that temper immediate expansion. Remodelers express greater confidence than new-home builders as remodeling drivers outpace new residential construction. The average home age rose from 31 years in 2006 to 41 years in 2023, increasing retrofit needs. Post-pandemic home equity gains improve homeowners' ability to fund projects, while growth concentrates among higher-end households and luxury remodeling.
Read at www.housingwire.com
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