This document summarizes key trends in the home improvement industry as of September 2017. It finds that the housing shortage is driving homeowners to remodel existing homes rather than move. Equity gains are also empowering homeowners to take on larger projects. Baby boomers account for over half of home improvement spending, focusing on outdoor living, while millennials favor fixer-uppers and will drive future spending. Two hurricanes increased demand for roofing, repairs, and generators. The outlook is positive, with contractor confidence and projected revenue growth high, indicating a "perfect storm" for the home improvement industry.

1. HOME IMPROVEMENT
INDUSTRY OUTLOOK
S E P T E M B E R 2 0 , 2 0 1 7 @ b r a d l e y h u n t e r
B R A D H U N TER
H o m e A d v i s o r C h i e f E c o n o m i s t
1

2. HomeAdvisor.com | Page 2
The #1 Marketplace in a $400 Billion Domestic Home
Services Market
400+ MSAs COVERED
NATIONWIDE
MARKETPLACE
45M+
HOMEOWNERS
164K+
SERVICE PROVIDERS
(“SPs”)

3. HomeAdvisor.com | Page 3
• Housing Shortage Driving
People to Stay Put and
Improve
• Equity is Empowering
Homeowners to Remodel
• People Are Tackling
Larger Projects
Key Trends
Unfolding
Right Now

4. HomeAdvisor.com | Page 4
Most Requested
Home Improvement
Projects
The average project cost is provided by
HomeAdvisor’s True Cost Guide. This
tool shows the average price of home
projects, as reported by homeowners.
*Based on home improvement data from April 1, 2016-April 1, 2017

5. HomeAdvisor.com | Page 5
Meet Home Improvement’s Two 900 Pound Gorillas
GENERATIONAL TRENDS

6. HomeAdvisor.com | Page 6
VS.BABY BOOMERS MILLENNIALS

7. HomeAdvisor.com | Page 7
Home Improvement
Spend by Generation
Baby Boomers report spending the most
money on home improvement projects,
followed closely by millennials.
The sample here is of homeowners aged
who did at least one home improvement
project in the past year.
Millennials
$5,046
$4,771
$5,604
$3,698
GenX Baby
Boomers
Greatest
Generation

8. HomeAdvisor.com | Page 8
Boomer Versus Millennial Home Projects
• Sheds, Playhouses
• Gazebos
• Decks
• Outdoor Lighting
• Brick and Stone
• Hot Tubs
• Basement Remodels
• Outdoor Play Equipment
• Childproofing
• Landscaping
VS.BABY BOOMERS MILLENNIALS

9. HomeAdvisor.com | Page 9
BOOMERS
“900-Pound Gorilla”
“Homeowners age 55 and over
generate a little more than half of all
home improvement expenditures in
the nation. Up from 31% in 2005 to
52% by 2015.”
They spend the most per year per
household of all generational groups.
They outspend the generation before
them by 52%.
(JCHS, 2017)
(HomeAdvisor True Cost Guide, 2017)
Boomers = the majority of home improvement spending.

10. HomeAdvisor.com | Page 10
Watch for Growth in
Mobility-Related
Modifications
Most Popular Rooms to Make Aging-
Related Modifications
Bathroom
48%
24%
20%
16%
Entrance or
Stairway
Kitchen Home
Exterior
9%
Overall
Home
*Data from HomeAdvisor’s 2016 Aging-in-Place Report

11. HomeAdvisor.com | Page 11
MILLENNIALS
“Gorilla Junior”
Millennials = Larger than the baby boomer generation.
• The new “30-Somethings”
• Nearly 80 Million People
• Déjà vu all over again
• Many buying “fixer-uppers”
• Will hire more pros as the years go by

12. HomeAdvisor.com | Page 12
Millennials and Home Improvement
as

13. HomeAdvisor.com | Page 13

14. HomeAdvisor.com | Page 14
HURRICANE IMPACT ON HOME
IMPROVEMENT
Hurricane Harvey and Hurricane Irma

15. HomeAdvisor.com | Page 15
Hurricane Impact
Most Requested Projects
• Shingle roofing
• Major repairs (general contractor)
• Drywall repair
• Water removal
• Mold & toxic material test
• Mold removal
• Dumpster rental
• Generator– install or repair
• Wood fence – install
• Electrical
• Tree removal
• Up next: carpet and flooring

16. HomeAdvisor.com | Page 16
Looking to the
Future
Predictions: Some “Lift” in…
Roof Straps
Impact Glass
Generators
$5,046
$5,604
$3,698
Project Requests

17. HomeAdvisor.com | Page 17
Outlook for Pros:
THE FUTURE IS BRIGHT

18. HomeAdvisor.com | Page 18
Business Confidence
How confident are you in your company’s
ability to get new business in the next six
months?
?
Confidence is close to 9 out of
10, and it went up for most
trade groups! 53.9% said “10
out of 10”
Remodel
Exterior
Mechanical
Finish
Landscape
8.8 8.9
2017 Q1 2017 Q2
8.8 8.9
2017 Q1 2017 Q2
9.0 9.0
2017 Q1 2017 Q2
8.8 8.6
2017 Q1 2017 Q2
8.7 8.8
2017 Q1 2017 Q2
EXTREMELY
CONFIDENT
NOT AT ALL
CONFIDENT
*Data from the Q2 2017 HomeAdvisor Farnsworth Index

19. Business Confidence
Assuming you had no challenges with hiring skilled laborers,
by what percentage do you think you could grow your
revenue over the next 12 months?
?
*Data marked with an asterisk signifies statistical significance among like data.
Remodel Exterior Mechanical Finish Landscape
HomeAdvisor.com | Page 19
No
change
Not Sure/
Don’t Know
7.3%
21.0%
23.3%
17.2%
12.6%
6.5%
6.9%
5.3%
11.2%
15.3%
18.4%
15.3%
11.2%
8.2%
10.2%
10.2%
9.7%
19.8%
15.6%
20.7%
14.3%
8.4%
3.8%
7.6%
8.8%
24.4%
18.5%
17.6%
8.0%
7.6%
7.6%
7.6%
9.6%
25.7%
21.3%
14.7%
12.5%
8.8%
3.7%
3.7%
Additional 1-
5%
Additional 6-
10%
Additional 11-
20%
Additional 21-
30%
Additional 31-
50%
Additional
51%+
*
*
*
*
*Data from the Q2 2017 HomeAdvisor Farnsworth Index

20. HomeAdvisor.com | Page 20
We’re Forecasting a
“PERFECT STORM”
for Home Improvement

21. HomeAdvisor.com | Page 21
FIVE CONVERGING
FORCES
• The Shortage of Inventory Will Benefit Pros in this Industry
• So Will the Equity Pop
• More Millennials are Becoming Homeowners
• Number of People Age 75+ -- Mobility, Quality of Life Modifications
• The Housing Stock is Growing Old (Millennials to Fix it Up)
A Perfect Storm for Home Improvement

22. HomeAdvisor.com | Page 22
Studies
Referenced
(HomeAdvisor)
2017 True Cost Report
HomeAdvisor.com/cost/report
Q2 2017 HomeAdvisor-
Farnsworth Index
HomeAdvisor.com/r/proindex/
2016 Aging-in-Place Report
HomeAdvisor.com/r/2016-aging-in-
place-report/

23. HomeAdvisor.com | Page 23
Complete Report Methodology:
2017 True Cost Report
Data included in the True Cost Report is based on an online survey conducted by HomeAdvisor’s internal research team. The
survey was conducted nationwide among 500 homeowners, ages 25 or older, from February 1-7, 2017. All survey participants
were primary or joint decision makers related to home maintenance and improvement projects completed in the prior 12
months. Additional project cost data is provided from HomeAdvisor’s True Cost Guide.
The “ Q2 2017 HomeAdvisor-Farnsworth Index”
The online survey was administered from May 11 to May 26
The sample for the study included 1,582 respondents across various construction and remodeling trades within the five
industry segments
A majority (90percent) of the sample was HomeAdvisor panelists.
Each respondent must have been at least 21 years old
Each respondent must have done at least 50 percent of their work on residential projects
Remodelers and general contractors had to do a majority of their work in the remodeling space (at least 51 percent)
Data marked with an asterisk throughout this report signifies statistically significance among like data
Aging-in-Place Report
Data included in the Aging-in-Place Report is based on results from a survey conducted by Qualtrics on behalf of
HomeAdvisor. The survey was fielded from August 10, 2016 - August 23, 2016 to 279 professional respondents, of whom 235
reported completing aging-related tasks and 586 homeowner respondents, all of whom 586 reported being age 55 years old or
older.