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A Harvard University study has found that riding home ownership coupled with higher income households has propelled remodeling houses in the US to new spending highs
Home improvement spending has risen from $153 billion in 1995 to $233 billion in 2003, a 52% increase. Remodeling kitchens and baths along with room additions lead the way as the most popular home improvement projects. The study found that homeowners earning over $120,000 were the primary people driving the home improvement increase with them responsible for some 60% of the increase since 1995.
While baby boomers were the primary force in the increase accounting for over 50% of home improvement expenditures, younger adults also have been opening their pocket books. Spending by younger adults increased more than 500% to $28 billion over the 8 year span. Hispanics also were noted for leading a significant increase in spending from foreign born homeowners and ethnic minorities.
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The study noted two areas that have played a role in these increases. Increases in housing prices helped provide equity that could be used for home improvements as well as low mortgage rates which encouraged more people to purchase homes. it said these two factors should help grow home improvement spending even more in the years to come.
Home improvement spending has risen from $153 billion in 1995 to $233 billion in 2003, a 52% increase. Remodeling kitchens and baths along with room additions lead the way as the most popular home improvement projects. The study found that homeowners earning over $120,000 were the primary people driving the home improvement increase with them responsible for some 60% of the increase since 1995.
While baby boomers were the primary force in the increase accounting for over 50% of home improvement expenditures, younger adults also have been opening their pocket books. Spending by younger adults increased more than 500% to $28 billion over the 8 year span. Hispanics also were noted for leading a significant increase in spending from foreign born homeowners and ethnic minorities.
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The study noted two areas that have played a role in these increases. Increases in housing prices helped provide equity that could be used for home improvements as well as low mortgage rates which encouraged more people to purchase homes. it said these two factors should help grow home improvement spending even more in the years to come.