The Home Improvement Market- A Booming Sector

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HOMESomeone has rightly said “Home is where the heart is”. The comfort of home is longed by everyone. People take so much of effort, time and money to build their dream house. You just don’t build a home, you build lives, story and memories in it.

Human are very volatile in nature. They are constantly looking for changes in their life to break away from the momentum. And this even applies to their homes. Home improvement or renovation allows people to change the look, feel and the mood of their homes. Home improvement is the process of making additions to one’s home or renovating.

The home improvement market, which concentrates everything from hard goods such as kitchenware and shower , construction resources, to soft goods and electrical appliances , has rapidly grown in recent years, driven principally by increasing competition.

What drives the growth?
According to market research, the growing population is credited to the growth of home improvement industry. There is an increase in nuclear families; Most of them are moving out to be independent and rise in their income level has also contributed to the growth. Other reasons being, sale offered by home care market which attracts customers to invest in new furniture, paints, and other home appliances. 

The industry’s expansion slowed significantly during the great depression. Also as people lost their homes and after the subprime mortgage crisis, there was a decrease in the demand for home improvement products. During the recession, people shelved their projects for a while. But post 2008 slowdown, the home improvement market has improved and it’s steadily coming back to the track. If market research is to be believed the home improvement industry’s revenue did not experience loss as heavily as other construction-related industries over the past five years, thankfully to rapid growth prior to 2008. The March 2013 market analysis, which forecasts movement in the home improvement products market in the U.S., shows an overall 5.4% increase in home improvement product sales in 2012 and 5.8% increase for the year. The report expects a standard increase of 5.9% in the coming two years. Increasing stability in the economy and higher income has pushed households to make better purchases and engage in most home improvement projects. As the economy continues to recover, these favorable conditions will continue through 2018.

The recent economic environment has been favorable to the industry. The development in modern trade, together with a shift in lifestyles towards independent living in the regional centers will sustain in the home improvement market growth phase for years to come.