The home remodeling and construction services industry is a $450 billion market, driven by homeowner and rental improvements, with an additional $100 billion attributed to commercial remodeling. Key trends include an aging housing stock, rising renovation expenditures, and a growing preference for remodeling over new home purchases due to economic pressures. The future of the industry looks promising with advancements in sustainable building materials and technology alongside a shift towards more customer-friendly purchasing experiences.

1. Renovate & Remodeling Construction Services
Home remodeling construction is a $450 billion market annually according to
MarketWatch.com. This consist of both homeowner & rental improvements and
building maintenance. It is estimated that another $100 billion in annual expenditures
is credited to commercial remodeling construction. The Joint Center for Housing
Studies from Harvard University recorded an 8% increase in remodeling
expenditures in 2019 over 2018.
This all comes down to making the renovation construction industry market segment
a monster of proportion. The growth trend in the industry and the greatest amount of
year over year growth is attributed to the top major metropolitan cities. This is
primarily due to rising single family housing prices in these cities and a growing
population.
The economic pressures of higher new home prices causes new home buyers to
pause when it comes to them buying a newly constructed home. At face value when

2. these homeowners begin to compare the investment required to renovate an existing
property to buying a newly built home, most homeowners choose remodeling. There
are certainly other factors that come into play during this decision making process,
but the total affordability of the required investment to get a premium home
remodeling project completed is undeniable.
The same can be said about commercial remodeling when comparing the investment
required to buying an entire office building instead of a complete renovation of the
interior or planning a building addition. Although the process of construction are
similar in both commercial and residential, the demand for residential remodeling
dwarfs commercial due to sheer numbers of the market size.
Aging Single Family Housing Stock
The aging housing stock also has a significant impact on the remodeling industry.
The average age of the housing stock is 37 years. This is up sharply from 31 years in
2005. The new home construction market has not been able to keep up with aging
housing stock. This has also contributed to the surge in the remodeling market.
Interestingly enough, 70% of all the new homes built after 2010 are owned by GenX
& Millennal's. While on the reverse side, 56% of homes built before 1970 are
homeowners of age 55+, according to the NAHB.
The new home construction market is a $585 billion market. This currently
represents 1.6 million housing starts as of January 2019. The new home building
industry typically maintain about a 5 month supply of homes. The national market
share of existing home inventory levels is currently at a 3.5 month supply of homes
on the market. Lower supply levels also create economic pressure of holding and
driving prices due to shrinking housing inventories.
Home Improvement Expenditures by Project Sector
The JCHS breaks up the remodeling projects into 3 categories, discretionary,
replacement and essential. Discretionary expenditures are just what they sound like.
The owners are electing to improve their home because they want to. Replacement
expenditures are generally associated with products that have reached their
functional life cycle and need replacement. The essential expenditures are reflected
by incidents like disasters or accidents.
The largest expenditure sector is the replacement expenditure market. These would
be interior, exterior products and equipment. This represents products like doors &
windows, roofing, siding and equipment like air conditioning and hot water heaters.
This sector represents nearly 50% of the total home improvement expenditures
market.
The second largest home improvement sector would be remodeling and renovations.
This sector represents kitchen & bath remodels, home additions and garage & porch
attachments. This sector represents about 35% of the total home improvement
expenditures market.

3. The smallest sector of home improvements is the disaster and accident home
improvements. These are generally associated with insurance losses that result from
home insurance claims.
Renovate & Remodeling Construction Future
Renovate and remodeling construction will continue to grow and become a more
important part of the housing option determination process. With home prices
steadily rising coupled with the actual number of single family homeowners
shrinking, the home improvement industry will continue to grow and contribute to
the future of US housing.
There has been considerable advances in the remodeling industry in home products
and building materials the last several decades. Products like Hardi-plank & smart
home technology has made older homes more sustainable and a longer service life.
The replacement product market trends have been Eco friendly. Home products that
conserve energy and have a greater service life before the need to replace.
Computerized interior products and operating software's continue to be a larger part
of our home ownership experience.
The creation of new home building materials like man made stone & flooring
materials have also made homes more sustainable. The trend toward new home
product materials that conserve our natural resources has also gained momentum.
Another major trend in home building materials is a constant growing number of
product options available to consumers. More options provides the consumer a
greater selection of options to choose from. Garage doors is a good example of
multiple style product options available. Once a very generic product has blossomed
into a larger number of choices for homeowners to select architectural garage doors.
The future of home remodeling and renovation will play a larger role in
homeowners building product purchasing and improvement strategy for years to
come. The trends suggest that the way people purchase home renovation products
and services is also changing. With the 3D designing capabilities, owners can clearly
see what a finished product will feel like before it is built. These images can also
introduce color and texture to assist with decor decision making. The future of the
home remodeling and renovation industry will continue to be more customer friendly.
CONTACT
5850 San Felipe St Houston, TX 77057
713-818-1720
info@marwoodconstruction.com

4. https://www.marwoodconstruction.com/renovate-
remodeling-construction-services/
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