Stocks are rising for home-improvement retailers such as Lowe's and Home Depot as the housing-market recovery continues to advance since the crisis in 2008. Increase in U.S House prices and construction leads to larger projects of homeowners and buyers. More purchases on cabinets, floors, and appliances as homeowners' equity increases and more construction of renovation caused by a shortage of new homes.
Study of Mr. Hunter of HomeAdvisor shows that homeowners spend $5157 on average on home repairs and renovations, 50% more than the previous year. Home Depot is doing whatever they can to maximize this opportunity, whether its migrating to more online shopping, or expanding and opening up new stores. Some purchases tend to be made in person rather than online such as major renovations. Expanding and opening new stores include risks of getting too ahead of the demand for housing development
https://www.wsj.com/articles/housing-recovery-helps-home-improvement-firms-avoid-retail-blues-1493840051
Alan Nguyen
MKTG 3343
I never knew there was a trend associated with expansion of stores and the demand for housing development. That's interesting.
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