Analysts believe home improvement and DIY trends will become a mainstay as more Americans move to lower density areas. This means more green for retailers like Home Depot and Lowe’s, which have been faring well during the pandemic already, according to CNBC. Home improvements are in the works for many homeowners already. According to the Wells Fargo research note, 88% of the 1,000 consumers surveyed said they plan to increase their retail spending for home improvement. The Home Depot CEO says consumers may continue their pandemic DIY projects into the future as they spend more time at home. But as buyers look to purchase larger homes, the list for to-dos will only grow, and may be the place where the pros come in.
The suburban shift could also benefit auto-focused retailers, such as Carvana, AutoZone, O’Reilly Automotive and Advance Auto Parts, according to the note.
In the research note, Wells Fargo senior equity analyst Zachary Fadem spelled out factors that have driven some people out of cities. Among them, he said, about 65% of early Covid-19 cases were concentrated in dense cities. People have sought out more space as they work and learn at home and as aspects of city life from public transit to high-end restaurants are unavailable or unappealing.