APRIL 2017 RETAILOBSERVER.COM
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And while high rents may provide an incentive to buy homes, they
also make it difficult for first-time buyers to save for a down payment.
Some demographic trends are also presenting challenges to a
healthier remodeling market outlook. A disproportionate share of
growth over the coming decade will be among older owners,
minority owners, and households without young children; groups
that traditionally spend less on home improvements.
"Despite these challenges, the remodeling industry should see
numerous growth opportunities over the next decade," says Chris
Herbert, managing director of the Joint Center for Housing Studies.
"Strong demand for rental housing has opened up that segment to
a new wave of capital investment, and the shortage of affordable
housing in much of the country makes the stock of older homes an
attractive option for buyers willing to invest in upgrades."
Finally, as a new generation of homeowners enters the remodeling
market, specialty niches focused on energy-efficiency, environmental
sustainability, and healthy homes are likely to see significant growth.
Home automation—encompassing everything from entertainment
systems to home energy management, lighting, appliance control,
and security—is also emerging as a strong growth market,
particularly among younger households.
Looking ahead, there are several opportunities for further growth in
the remodeling industry. The retiring baby boom generation is already
boosting demand for accessibility improvements that will enable
owners to remain safely in their homes as they age. Additionally,
growing environmental awareness holds out promise that sustainable
home improvements and energy-efficient upgrades will continue to
be among the fastest growing market segments.
Report available at: www.jchs.harvard.edu/
improving-americas-housing-embargoed-report.
Twitter: Discuss the report online with #HarvardRemodeling
Contact: Kerry Donahue, 617-495-7640, kerry_donahue@harvard.edu
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