Recent data reports suggest home improvement spending is continuing its upward trend. The latest data from Harvard University's Joint Center for Housing Studies reports the aggregate total of remodeling spending was at an all-time high of $424 billion in 2017, up 10% from 2015. A large portion of the spending comes from the older segment of homeowners, HousingWire reports.
Older homeowners are spending big on home renovations. Not only does this demographic have a high rate of homeownership, they also have the resources to pay for renovations, the study said.
In fact, spending among older owners grew more than 150% to $117 billion in the last two years, the report noted, fueled by an increase in the number of older owners and an uptick in the amount they’re spending to improve their homes.
That means that households age 55 and over accounted for half of all home improvement spending nationwide. And, the researchers said they don’t expect this trend to slow down anytime soon. “As members of the Baby Boom generation age into their 70s and 80s, investments in home modifications to improve accessibility are expected to soar,” according to the report.
A recent report from the JCHS found more than half of U.S. households are headed by an individual over the age of 50, and the number of baby-boomer household heads increased 26% from 2011 to 2016. The report found that many U.S. homes are not equipped to accommodate aging individuals, particularly those with mobility issues. Only 3.5% of homes have no-step entries or extra-wide halls and doors, with a smaller percentage of homes having lever-style handles on doors or faucets and wheelchair accessibility. As such, the JCHS projected remodeling projects to improve home accessibility will be the largest driver of home improvement activity through 2025, with 55 and older households accounting for more than three-quarters of the growth in the home-improvement market.
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