Homeowners are remodeling rather than moving. We know this because “big-ticket” remodeling revenue is surging, while homes for sale as a percentage of occupied households has hit an all-time low.
Home builders and resale agents voice frustrations, while remodeling contractors have never been this busy. Homeowners are on pace to spend more than $215 billion on remodeling this year—$73 billion on big projects (above $5,000 per project) and the remainder on small projects.
Building product companies are experiencing very uneven demand right now:
- Siding vendors have strong sales, as long-time homeowners (we call them nesters) frequently replace the siding.
- Deck companies benefit less, however, as recent movers tend to put in new decks, while nesters do not.
The graphic below illustrates the big discrepancies in spending between someone who has recently moved, has been in their home 4–9 years, or has been in the home ten years or longer.