Home improvement spending has increased by more than 50% since 2010, according to a report by the Harvard Joint Center for Housing Studies based on data from the Department of Housing and Urban Affairs (HUD).
Why so much money on if not aging then existing housing stock?
- There is a shortage of newly constructed houses.
- Both existing and aging housing stock requires repair and upkeep.
- Increasing higher housing prices over time have boosted available home equity that can be used for home improvement loans.
- There is a growing population of older homeowners who are financially able to pay for home renovations.
Aging homeowners represented approximately 50% of home improvement spending, according to Harvard’s Joint Center on Housing Studies. 25% of that home improvement spending came from those between the ages of 55 and 64; 25% came from those 65 years and up.
The age distribution and average amount of home improvement spending based upon age looked like…
- 65 years and up = 25% of spending at an average expenditure of $9,443
- 55-64 years = 25% of spending at an average expenditure of $10,815
- 45- 54 years = 23% of spending at an average expenditure of $11,542
- 35-44 years = 18% of spending at an average expenditure of $11,700
- Under 35 years = 9% of spending at an average expenditure of $9,714.
The most popular home improvements included…
- Carpets, Floors, Paneling, Ceiling Tiles
- 2M homeowners spending an average of $3,285.
- Plumbing
- 1M homeowners spending an average of $1,360.
- Built-in Dishwasher & Garbage Disposal
- 7M homeowners spending an average of $570.
- Windows & Doors
- 7M homeowners spending an average of $3,442.
- Water Heaters
- 6M homeowners spending an average of $976.
- Roofing
- -3.4M homeowners spending an average of $7,674.
- Bathrooms
- 9M homeowners spending an average of $6,362.
- Landscaping & Sprinkler Systems
- 8M homeowners spending an average of $2,497.
- Central Heating and Air Conditioning
- 7M homeowners spending an average of $5,113.
- Electrical Wiring & Fuse Breaker Boxes
- 2M homeowners spending an average of $1,473.
- Thanks to Harvard’s Joint Center on Housing Studies, HUD and HousingWire for source data.
