You may recall when the bubble burst three years ago, we had so-called economists predicting good times for the home improvement business, as many homeowners (that is, the ones not going through foreclosure proceedings) would be stuck where they were and would be more likely to add a room, remodel the kitchen, etc., instead of moving to a new and larger home.
So much for economic prognosticators.
what the economists failed to take into account is that those holding the bag for the most part are baby boomers who are in the largest home they will own. Their kids will soon move away to start their own lives if they haven’t already begun to do so. This means that they will not be adding on. Why would they need more space for fewer people? Of course, when junior comes back to live with mom and dad due to all the hope change flying through the oscillating airfoil, Perhaps then there will be some home improvement occurring. Then again, perhaps they will just rent their own place because Mrs. Junior can’t stand living with her mother-in-law...
I'm a Contractor, and that's exactly what they are doing. Our business has shifted from 95% new construction : 5% everything else to the exact opposite. I've done three new houses this year. Everything else has been remodel, repair or additions. I work and live near three Lowe's and they are always busy with both home owners and tradesmen. Lots of illegals are moving away because the cash is drying up and you can't be paid under the table if the bossman has no cash. Even sure bets suffer in the obama economy.