Dive Brief:
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Eight in 10 (80%) homeowners plan to complete home improvement projects over the next year, according to HomeAdvisor's 2017 True Cost Report, despite just one-third (35%) saying they are confident that the Trump administration’s policies will improve their own financial standing.
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Homeowners completed more home improvement projects from February 2016 to February 2017 than they did from February 2015 to February 2016, and they spent on average about $1,850 more. Two-thirds expect their 2017 home improvement spending to equal or surpass what they spent in 2016.
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Baby boomers and millennials are spending the most on home improvement projects, with the former cashing out $5,604 in the last 12 months and millennials following closely behind at $5,046.
Dive Insight:
Despite the general uncertainty among consumers as to the impact of the Trump administration’s policies on their personal wealth, consumer confidence is still relatively high. The figure hit a 15- year high in March, dipping slightly in April and coming up short of analyst expectations.
Still, as the economy improves, many owners have the cash to take on repair and renovation work. Millennials and baby boomers are leading that charge, with millennials opting for personalization and integrated technology, and boomers updating their homes for accessibility. According to HomeAdvisor, the sector will likely see an uptick in big-ticket improvement projects, such as bathrooms remodels, additions and exterior re-painting or staining.
The remodeling sector started off 2017 strong, with the National Association of Home Builder's Remodeling Market Index rising five points in the first quarter with growth in calls for bids, committed work and project backlog.
While eight in 10 home-improvement professionals expect revenue growth in the next year, a deceleration in demand for their services could be on the horizon. Still, the RMI index has been resistant to such a slump in demand for 15-straight quarters — and analysts remain confident in the segment as a tight trade-up market has more owners opting to add value to their homes.
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