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New Trend: Increased Home Improvement Spending

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home improvement spending

What follows is a summary of a recent news story by the Wall Street Journal.  The link to the full article can be found at the end of this post.

Increased spending by homeowners – not to mention many a landlord – on everything, from minor trimmings to full-scale remodeling, is being perceived as an encouraging sign by the struggling construction industry. The increase is only a few percentage points, but given that it is the first positive sign since 2006, market watchers are hailing the spending as a positive sign.

Most of the recent remodeling projects have been minor alterations around homes or rental properties, not necessarily whole scale renovations on fixer upper homes. Home builders acknowledge that people are choosing incremental remodeling as a substitute for buying new homes. However, even these small projects taken cumulatively have helped spur on the construction sector which has lately seen some of the lowest new home building numbers in recent history.

The home-improvement spending comes on the back of a more lively looking economy and increased consumer confidence. While most homeowners remain wary of investing in a property whose mortgage is worth more than its market price, others are choosing to embrace their homes and derive enjoyment from them while the market moves into a slow recovery. Their small projects have helped fuel the construction end of the real estate market and even pumped some juice into the ancillary materials market.

To read a more detailed Wall Street Journal report on the home improvement spending, click here.

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