- Home Depot and Lowe’s may be facing a decline in the home-improvement boom that has boosted sales over the last several years.
- Remodeling expenditures in the United States are set to rise over the course of 2019 — but the rate of growth is expected to decline between quarters.
- A Lowe’s spokesperson told Business Insider that the company was heartened by “rising residential investment and home prices.”
It’s looking like the remodeling boom is starting to fade in the United States — and that slowdown may have implications for home-improvement retailers like Home Depot and Lowe’s.
Over the last several years, home-improvement sales have soared. The good times even seeped into US pop culture, as remodeling-oriented reality shows like “Fixer Upper” have become TV juggernauts.
But home-improvement retailers didn’t have a strong housing market to thank for any of that. In fact, MarketWatch reported that “the housing market’s funk” had previously boosted the remodeling business. There were too few houses on the market to meet demand from buyers, thanks to the slow recovery of the house-building industry, a reluctance among homeowners to sell houses with low mortgages, and the rise of renting, among other factors.
Homeowners who couldn’t find a new house to purchase on the market would instead invest in remodeling their current homes.
But now, according to MarketWatch, “inertia” in the housing market is starting to have the opposite effect. An extended period of low for-sale inventories means fewer people are going out and…