Homeowners Hiring More Work Out
Americans now spend about $180 billion on home improvements annually, up from $150 billion in 1995, estimates the National Assn. of Home Builders. And more and more, they are calling on professionals to do those jobs rather than tackle them themselves.
That’s good news for professional home remodelers but a challenge for retailers such as Home Depot and Lowe’s. The retailing empires built to supply do-it-yourselfers increasingly are offering building services through their stores.
With home refinancings and equity loans running at record levels amid the lowest interest rates in years, homeowners have access to cash. Real estate has been a bright spot in the stay-at-home, post-Sept. 11 economy, and homeowners want their property in tiptop shape to reflect its rising value.
But the do-it-yourself share of home-improvement projects is gradually slipping, giving way to professional jobs. According to the National Assn. of Home Builders Research Center, do-it-yourself projects accounted for 38% of all home improvements in 2001, down from 44% in 1999.
Meanwhile, the percentage of homeowners hiring contractors for home projects rose to 53% last year from 46% in 1999.
The shift to using more professionals has been fueled by the aging of baby boomers and a rise in single-person households. As homeowners get older and reach their peak earning years, they are more likely to hire pros than undertake repairs themselves. Busy lifestyles also are encouraging the trend.
“The older homeowners get, the greater the preponderance to hire a professional for the work, from painting and wallpapering up to an addition on the house,” said Rick Strachan, group publisher at construction magazine publisher Hanley-Wood.
As the demand for professional home improvement services has risen, businesses in the industry have mushroomed. The number of U.S. remodeling firms increased 52% in the 10 years through 1997, with specialty contractors such as roofers, electricians and carpenters accounting for most of the rise, according to the Joint Center for Housing Studies at Harvard University.
At the same time, do-it-yourself retailers such as Home Depot and Lowe’s are seeking their slice of the so-called do-it-for-me market, offering installed-sales programs for everything from ceiling fans to kitchen cabinets.
