Not hard to believe, it has been trending this way for years.. With the new home construction market crippled for the next few years it will remain this way for the foreseeable future. What would be interesting to see is the decrease in remoding spending along that same time line. I am sure we have seen atleast a 30-40% reduction in remodeling spending
An Industry Breakthrough
And then the remodeling angels sang.
“Remodeling has rebounded and is on the rise,” according to a new report from Hanley Wood Market Intelligence. In an upbeat presentation at this week’s Remodelers Advantage Summit, Jonathan Smoke, senior vice president of Market Intelligence and Research, revealed a slew of data pointing to “significant long- and short-term growth opportunities for the industry."
“We couldn’t be more bullish or optimistic about remodeling,” Smoke said. Among other statistics, he noted that remodeling is indisputably the dominant force in residential construction, given factors including homebuilding’s sharp decline and a wave of “foreclosure renovations.”
Beyond the tremendous percentage jump for replacement and remodeling spending in 2009 (chart), several other “market drivers” point to continued growth for remodeling in the years to come. For instance, more than three-quarters of the nation’s housing stock is at an age that needs significant remodeling, Smoke noted.
As for why many remodelers aren't feeling the uptick, Smoke cited continued weak economic conditions in many parts of the country as a principal factor. Plus, he said, "the composition has shifted. If your business has not retooled to new kinds of projects, you may not feel it."