Source: www.insideradio.com, July 2024

Last year wasn’t the best of times for the home improvement industry — with some product categories for professional and consumer markets seeing negative growth — but research from the Home Improvement Research Institute finds that happier days could be ahead as 2024 progresses.

That’s good news for the space overall, which features two of radio’s foremost advertisers: Lowe’s and The Home Depot. They ranked No. 2 and 3 overall, respectively, in the latest Media Monitors spot count. For the week of July 8-14, Lowe’s aired 58,970 spots, followed by The Home Depot with 49,591. A third player in the space, Menards, aired 9,185, good for No. 62 overall.

That’s not to say the sky is entirely clear. According to the HIRI’s “Spending Patterns in a Changing Market: Home Improvement Trends During and Post Pandemic,” about 65% of homeowners cite inflation as a top concern over the past 12 months, while 57% said the economy in general.

“Inflation, rising remodeling costs, and stagnated incomes are influencing homeowner readiness within the home improvement industry in 2024, although not equally across the board,” HIRI says. “Certain demographics remain interested and eager to take on new projects, while others are more hesitant or might choose smaller DIY projects instead of large-scale remodels and renovations.

Among the top trends driving homeowner sentiment:

  • The overall market is getting better: After a 1.5% decline last year, growth is ticking upward, according to HIRI’s Monthly Economic and Industry Update from June 2024. Growth is expected to continue from 2025 to 2028, topping $642.3 billion by the end of 2028.
  • Many homeowners are ready for a change of scenery: “A majority of homeowners would potentially be interested in moving to a new house, if interest rates and availability were to improve,” HIRI says. “A quarter of them are currently locked into their existing home, having secured a mortgage rate lower than 3%; they are hesitant to give that up.”
  • When it comes to spending, past is prologue: While prior expenditures are often an indicator of future projects, there’s a caveat attached. HIRI’s report says “locked in” homeowners, on average, spent an average of about $7,000 on home improvement in the past year — and they anticipate spending even more in the next 12 months.
  • Homeowners want to enjoy their surroundings. HIRI says getting more enjoyment out of one’s home is the top motivator for a home improvement project in the past 12 months. It’s followed by updating the “home’s style.” That said, remodeling projects like expanding a home and making a dwelling more energy efficient generally result in the most spending.