No Slowing Down for Home Improvement Projects and Sales
Home improvement spending grew during the pandemic and it’s not predicted to slow down any time soon. According to MarketWatch, home improvement retailers Home Depot and Lowe’s have a 17% and 12% market share, respectively, and Bank of America predicts the two will continue to see gains. Bank of America also estimates 2020 home improvement sales and services reached $767 billion, making it the 20th largest economy in the world. And as more Americans plan to purchase homes within the next two years, the future remains favorable for the industry and home improvement sales.
Analysts conducted a millennial survey that found that much of the home improvement activity will continue beyond the pandemic. Nearly three-quarters (72%) said they’re likely to buy a home in the next two years.
“As a result of a combination of more time at home, favorable household formation trends, and strong household balance sheets, demand for a wide range of home improvement projects has remained at elevated levels over the last year,” Bank of America said.
Home Depot sales in 2020 totaled $132.1 billion, and Lowe’s rang up $89.6 billion in sales, making them two of the 10 largest retailers in the U.S.
Shares are up 15.6% and 18.8% respectively for the year to date. Both have outpaced the benchmark S&P 500 index SPX, which has gained 12.3% over the period.