The $1SO Billion Gorilla

It won't come as a surprise to anyone in this business that residential remodeling is on a roll.

This being National Home Improvement Month, some interesting, even amazing, numbers have been trotted out by the National Association of the Remodeling Industry (NARI). The remodeling market is expected to reach $150 billion by the end of this year. Remodeling's role in our entire economy is profound, surpassing many trendier markets that get more publicity.

"A healthy economy, a population increase, an aging housing stock and more people owning their own homes are resulting in a boom for the remodeling industry," notes NARI president Ken Skowronski. "Household incomes are on the rise, resulting in more discretionary monies, and homeowners realize the value of investing in their residences."

Other numbers buttress the confidence.

According to a Harvard study, there are now 120 million homes in America, with new homes adding only I Vo to 27o to the total each year, leaving the remaining 98Vo to 997o targets for fix-up. About 25 million homeowners undertake some type of home improvement project every year, NARI says, adding that projects in the high five and six figure range are becoming commonplace.

Baby Boomers (everyone born between 1945 and 1964) continue to be the prime market for remodeling. They represent 45Vo of the American population, are generally well educated and financially well off. They spend twice as much on their homes as those over 64 years of age. As Boomers enter their peak earning years, they are choosing to stay put and invest in improvements. Boomers work longer hours than any other group since WWII and have the highest ratio of dual income families.

The statistics for the Generation X and Seniors groups that bracket the Boomers are also strong.

The remodeling roll is expected to continue. Are you on board?