Source: Yahoo! News —
Americans looking to remodel their home are pulling back, but better days are ahead for the industry.
“Remodeling is slowing, but there’s a historic boom coming,” Eric Finnigan, VP of research & demographics at John Burns Real Estate Consulting, told Yahoo Finance in an interview.
According to Finnigan, there are three factors likely to help this sector in the coming years.
First, there’s an expectation that the residential remodeling market will have 24 million homes in need of repairs or upgrades to roofs, floors, heating and cooling system, kitchens, bathrooms, and more.
“[These homes are] basically going to go through a complete sort of facelift,” Finnigan said. A home enters its “prime modeling years” when it reaches about 20-40 years old.
“We’re seeing a big wave of homes entering that cohort, [those] sort of prime remodeling years,” Finnigan said.
Second, three-quarters of mortgage borrowers are locked in with mortgage rates at 4% or lower, and will likely stay put for as long as possible. But those homes will also need an upgrade, Finnigan said.
