By Matt Cardin
By now it’s evident to everybody with a pulse that America’s current housing crisis is one for the history books. This is, to put it mildly, a serious situation that’s severely impacting much more than just the housing industry.
That’s why it’s reassuring that one segment of the industry is still holding up its economic head, namely, the $1.5 billion remodeling market. For obvious reason, this news is significant to readers of Surface with their interest in wide plank hardwood flooring, home remodeling, etc.
Back in 2006, during the early innings of the housing crisis, Marcia Jedd reported for HGTV (in “Remodeling Market Adjusts to Housing Slump”) that remodeling was not only surviving but quite possibly thriving. “Remodelers,” she wrote, “take heart: In a housing downturn that is exceptional in many aspects, remodeling is holding its own. In fact, by some accounts, business is booming.” She quoted Kermit Baker, Ph.D., director of the Remodeling Futures Program at Harvard’s Joint Center for Housing Studies, as saying that while the remodeling market was definitely feeling the pinch, small remodeling projects of the home improvement sort, such as windows, roofs, flooring, decks, and small additions, would experience strong demand.
That was two years ago. In hindsight it’s apparent this projection was fairly accurate. The most recent information presented by the National Association of Home Builders in its Remodeling Market Index (RMI) shows that after declining only slightly in the fourth quarter of 2007, remodeling activity held steady during the first quarter of 2008, showing only minor weakness in tandem with the overall housing slump and appearing poised for a recovery in 2009-long before most economists are predicting anything similar for the overall housing market. And between then and now a slew of reports and articles, many of them easily obtainable by Googling combined search terms like “housing slump” + “remodeling,” has indicated that while spending on remodeling projects has slowed, in many cases the wider housing bust is actually driving the remodeling market, which in any event shows strong growth prospects. Needless to say, we’d love to hear from readers about their own experiences and observations in this area.
Posted on Aug 04, 2008 AT 09:11 PM in Hardwood Flooring • Home Building & Contracting • (0) Comments
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